The USD/CAD currency pair continues to navigate through a lateral trading pattern that began at 1.3901. Currently, the intraday outlook remains unbiased, suggesting a balanced stance. While there’s a possibility of a further decline, any downward movement is anticipated to be limited. The 38.2% Fibonacci retracement level of the range from 1.3095 to 1.3901, located at 1.3593, is expected to act as a strong support, potentially initiating a rebound. A break above 1.3901 would signal a resumption of the broader upward trend.
Looking at the larger landscape, the corrective phase starting from the 2022 peak of 1.3980, encompassing a three-wave decline to 1.3095 is likely to be complete. A decisive move above the 1.3980 mark would confirm the continuation of the uptrend that began at the 2021 low of 1.2009. The next significant milestone is projected at the 61.8% Fibonacci extension of the 1.2405 to 1.3980 range from 1.3095, which sits at 1.4068. This bullish scenario holds credibility as long as the support at 1.3382 remains intact.
Analysis Summary
The USD/CAD pair is currently in a sideways pattern, with the potential for a near-term dip and a subsequent rebound. The longer-term perspective suggests an upward trend resumption, particularly if the pair surpasses the 1.3980 level.
Key Points
- USD/CAD is trapped in a sideways pattern, with neutral short-term bias.
- Rebound is likely if support at 1.3593 holds.
- Long-term bullish trend expected to resume on breaking above 1.3980.
