Daily Forex Analysis – USD/CAD
In recent trading sessions, the USD/CAD pair has exhibited a neutral intraday bias, marked by a slight pullback. This temporary setback is expected to stabilize, with the downside firmly supported at a marginally adjusted level of 1.3663. Should this support level hold, it’s anticipated that the pair might initiate another upward thrust. A breakthrough above 1.3883 could signal a resurgence of the recent rally, potentially challenging the slightly increased peak of 1.3980. A decisive surge past this point might confirm the continuation of a broader ascending trend, aiming for the forecasted target of 1.4068.
Expanding the perspective, the larger-scale corrective pattern from the slightly higher 2022 peak of 1.3980 appears to have concluded. This pattern comprised three declining waves bottoming out at 1.3095. A firm breach above this recalibrated 2022 high of 1.3980 would unmistakably signify a trend reversal from the 2021 low of 1.2009. The next milestone in this upward trajectory is projected at 1.4068, calculated as the 61.8% projection from the ascending sequence starting at 1.2405, reaching 1.3980, and retracting to 1.3095. This bullish scenario remains highly plausible, provided that the support level of 1.3572 remains intact.
Analysis Summary
The USD/CAD pair, currently exhibiting a neutral stance, shows potential for another upward rally if it maintains support above 1.3663. A decisive break above the 2022 high of 1.3980 would not only confirm a continuing uptrend from the 2021 low but also set a new target at 1.4068, with long-term support at 1.3572 lending strength to the bullish case.
Key Insights
- Neutral intraday bias in USD/CAD with support at 1.3663.
- Break above 1.3980 key for confirming uptrend continuation.
- Long-term bullish target set at 1.4068.
