USD/CAD Daily Analysis
USD/CAD indicates a shift to a neutral intraday bias following a recovery that has maintained levels above the temporary low of 1.3483. Despite this, the potential for further decline remains a pertinent consideration, as long as the resistance level of 1.3629 continues to hold. A breach below 1.3483 could signal a resumption of the downtrend from the high of 1.3901, potentially targeting the next support at 1.3382. This support level is particularly interesting as it is proximate to the 61.8% Fibonacci retracement of the range from 1.3095 to 1.3901, located at 1.3403. Here, a robust support response is anticipated, which may catalyze a rebound.
The ascent from 1.3095 is interpreted as the final phase in the overall upward trajectory from the 2021 low of 1.2009. A continued rally is plausible as long as the support level 1.3382 remains unbreached, potentially aiming for the 61.8% Fibonacci projection of 1.2405 to 1.3980 from 1.3095, calculated at 1.4068. However, a decisive drop below 1.3382 would significantly alter this outlook, potentially leading to a deeper retracement towards the 1.3095 level.
Analysis Summary
The analysis suggests a neutral short-term bias with the potential for decline unless the 1.3629 resistance is surpassed. On a Long-term basis, the pair’s trajectory is bullish, eyeing the 1.4068 level, contingent on sustaining the 1.3382 support.
Key Points
- Short-term neutral bias; watch 1.3629 resistance.
- Key support at 1.3382 is crucial for trend direction.
- Long-term bullish outlook targets 1.4068.
