sideways trading in the short term. Although the possibility of a further decline exists, such a downturn should find support at the 38.2% Fibonacci retracement level of 1.3095 to 1.3901, specifically at 1.3593, which could lead to a rebound. A later-stage breakthrough of 1.3901 might signal a continuation of the broader rally.
Analyzing the larger picture, the corrective pattern from the 2022 peak of 1.3980 appears to have concluded with a three-wave decline to 1.3095. A decisive breakthrough above the 1.3980 high would confirm a trend resumption from the 2021 low of 1.2009. The next target would be the 61.8% Fibonacci projection of 1.2405 to 1.3980 from 1.3095, which lies at 1.4068. This outlook remains probable as long as the support level of 1.3382 persists.
Analysis Summary
The USD/CAD market maintains a neutral intraday bias, with the potential for sideways trading. A rebound is likely if support at the 38.2% Fibonacci retracement level holds. In the broader perspective, surpassing the 2022 high would indicate a continued uptrend, with the next target at the 61.8% Fibonacci projection.
Key Points
- Neutral intraday bias in USD/CAD, with potential for more sideways movement.
- Rebound is possible if support at 1.3593 holds.
- Breaking the 2022 high of 1.3980 signals an uptrend continuation to 1.4068.
