Daily Forex Analysis – USD/CAD
The recent overcoming of the 1.3763 resistance in the USD/CAD pair suggests that the retracement from the 1.3901 high may have reached its conclusion. The market’s immediate focus shifts to the upside, eyeing a potential retest of the 1.3901 resistance level. Should the pair experience another downturn, it is expected that the 38.2% Fibonacci retracement of the rally from 1.3095 to 1.3901 at 1.3593 would offer substantial support and foster a rebound. Nevertheless, a decisive dip below 1.3593 could lead to a more pronounced descent toward the 61.8% retracement at 1.3403.
Expanding the view to the broader landscape, the complex corrective structure from the 1.3980 peak of 2022 is likely completed with its three-wave pattern bottoming at 1.3095. A clear advance past the 1.3980 milestone would cement the continuation of the upward trend from the 2021 trough at 1.2009. This bullish scenario retains precedence as long as the 1.3382 support remains intact. Conversely, a conclusive breach of 1.3382 would imply that the correction from the 1.3980 level is still in progress, warranting a reassessment of the bullish outlook.
Analysis Summary
USD/CAD has shown a resurgence of bullish momentum with a focus on testing previous highs, while the larger trend remains contingent on pivotal support levels.
Key Points
- USD/CAD tilts back to bullish bias above 1.3763.
- A retest of 1.3901 resistance is forthcoming.
- The long-term uptrend hinges on support at 1.3382.
