USD/CAD Analysis
The intraday bias in USD/CAD has transitioned to a neutral stance, primarily due to the recent recovery observed in the market. On the downside, a breach of the 1.3180 level would signal a continuation of the decline from 1.3901, potentially reaching the 1.3095 support level and perhaps extending further downwards. However, it’s important to consider the bullish convergence condition noted in the 4-hour MACD. If there is a break above 1.3288, it would indicate a short-term bottom formation, shifting the bias back towards an upside trajectory for a more robust rebound.
The outlook for USD/CAD becomes more complex, primarily due to a deeper-than-anticipated decline from 1.3901. Despite this, the price movements from 1.3980 (the high of 2022) are still perceived as part of an ongoing corrective pattern. The larger uptrend, which commenced from the 1.2009 low in 2021, is expected to resume eventually, provided that the 1.2951 level (which has transitioned from resistance to support) holds firm.
Analysis Summary
USD/CAD shows a neutral intraday bias with recovery influences. A break below 1.3180 could lead to further declines towards 1.3095. Conversely, a rise above 1.3288 may indicate a short-term bottom and shift the bias upwards. The broader trend suggests a correction from 2022’s high, with a potential resumption of the uptrend from 2021’s low, contingent on the 1.2951 support.
Key Points
Neutral intraday bias in USD/CAD, with recovery influencing current trends.
Potential downside continuation below 1.3180, targeting 1.3095 support.
A broader perspective suggests a corrective phase from 2022’s high, with a long-term uptrend possible.
