USD/CAD Analysis
The USD/CAD currency pair persists in a range-trading scenario, with the intraday bias maintaining a neutral stance. A downside movement below the pivotal level of 1.3479 would signify a continuation of the corrective descent initiated from the high 1.3897. Notably, the downside momentum is anticipated to find support around the 1.3378 level, closely aligned with the 61.8% retracement level of 1.3091 to 1.3897, precisely at 1.3399. This support is poised to act as a buffer, potentially facilitating a rebound in the exchange rate.
Conversely, an upward breach of the 1.3625 resistance level would signal a short-term bottoming, pivoting the bias towards an upward trajectory and suggesting a more robust ascent.
The ascent from 1.3091 is the fifth leg of the overall upward movement from the 2021 low of 1.2005. A sustained upward momentum is foreseen, contingent upon the resilience of the 1.3378 support level. This projection points towards the 61.8% extension of the rally from 1.2401 to 1.3976, measured from 1.3091, positioning itself at 1.4064. However, a decisive breach of the 1.3378 level would cast doubts on this outlook, potentially triggering a more profound retracement back to 1.3091.
Analysis Summary
The USD/CAD exhibits persistent range trading, with potential downside moves expected to find support at 1.3378, aligning with a crucial retracement level. Meanwhile, an upward breakout at 1.3625 could signal a short-term reversal. In the broader context, the overall ascent from 1.3091 is viewed as the fifth leg, anticipating further gains unless 1.3378 support is decisively breached.
Key Points
- Range trading persists; downside supported at 1.3378.
- An upside breakout at 1.3625 may indicate a short-term reversal.
- A broader perspective suggests continued ascent, dependent on 1.3378 support.
