USD/CAD Analysis
The depreciation of USD/CAD, initially observed in the fall from the high of 1.3897, has resumed its course by breaching the critical support level at 1.3479. This downturn reinstates the intraday bias towards the 1.3378 support zone, with anticipation of robust support at this juncture fostering a potential rebound. However, a pivotal shift in momentum necessitates a breakthrough of the 1.3617 resistance level, serving as a crucial indicator for a plausible short-term bottoming. The prevailing risk tilts towards the downside if recovery remains elusive.
Delving into the broader perspective, the ascent from 1.3091 is identified as the fifth leg within the overarching upward trajectory from the 2021 low of 1.2005. The ongoing rally is poised to persist as long as the 1.3378 support remains resilient, targeting the 61.8% projection of the range from 1.2401 to 1.3976, computed from the 1.3091 level, culminating at 1.4064. However, a decisive breach of the 1.3378 support level could alter this optimistic outlook, ushering in a more profound retracement to 1.3091.
In summary, the USD/CAD’s downward momentum is underway, with a critical focus on the 1.3378 support zone and the necessity to surpass the 1.3617 resistance to signal a potential reversal. The broader trajectory remains bullish, contingent upon the resilience of the 1.3378 support, with a target projection at 1.4064. The pivotal juncture lies in avoiding a definitive breach of 1.3378, which would shift the dynamics towards a more substantial retracement to 1.3091.
Analysis Summary
The USD/CAD exhibits a downward trend, emphasizing the significance of the 1.3378 support and the need to surpass the 1.3617 resistance for a potential reversal. The broader bullish trajectory hinges on the resilience of 1.3378, targeting 1.4064, but a breach may lead to a deeper retracement to 1.3091.
Key Points
- Downward momentum in USD/CAD; attention on 1.3378 support and the pivotal 1.3617 resistance.
- Broader bullish trajectory contingent on 1.3378 support, targeting 1.4064.
- A definitive breach of 1.3378 introduces the risk of a substantial retracement to 1.3091.
