Daily Forex Analysis – USD/CAD
The short-term trend of the USD/CAD appears to be maintaining a neutral stance, with the potential for the consolidation phase originating from 1.3788 to linger. On a more optimistic note, a conclusive surpass of the 1.3788 resistance could propel the pair, originating from 1.3095, to challenge the significant 2022 high at 1.3980. Conversely, a breach below the support at 1.3619 may instigate another downward segment, prolonging the near-term correction that began from 1.3788.
Looking into the macro perspective, current trajectories suggest a revival in the argument that the correction starting from the 2022 peak of 1.3980 may have wrapped up with a three-wave decline to 1.3095. A decisive leap beyond the 1.3980 threshold would affirm the resurgence of the bullish trend, which has its roots in the 2021 trough of 1.2009. A plausible objective for this movement could be the 61.8% projection derived from the progression of 1.2405 to 1.3980, initiating from 1.3095, pinpointing 1.4068 as the next major milestone. This potential upward trajectory gains more traction as long as the support at 1.3382 remains firm.
Analysis Summary
The USD/CAD’s intraday trend is hovering in neutrality, with potential challenges to the 1.3980 and 1.4068 levels in the offing. The analysis hinges on crucial support at 1.3382 and the recent patterns traced back to 2021 and 2022 highs and lows.
Key Points
- A neutral phase persists with eyes on the 1.3788 resistance.
- The downward correction could be influenced by a breach of 1.3619 support.
- Macro trends point towards potential tests of 1.3980 and 1.4068, with a solid foundation at 1.3382.
