Mon, May 29, 2023 @ 22:01 GMT

USD/CAD Daily Outlook

Daily Pivots: (S1) 1.3417; (P) 1.3453; (R1) 1.3478; More….

Intraday bias in USD/CAD is back on the downside with breach of 1.3405 support. Fall from 1.3860 is likely resuming and further decline should be seen to 1.3224/61 support zone. As the decline is seen as the third leg of the corrective pattern from 1.3976, strong support should be seen around 1.3224/61 to bring rebound. On the upside, break of 1.3552 will turn bias back to the upside for 1.3860 resistance.

In the bigger picture, the up trend from 1.2005 (2021 low) is still in progress. Break of 1.3976 will confirm resumption and target 61.8% projection of 1.2401 to 1.3976 from 1.3261 at 1.4234. Firm break there will pave the way to long term resistance zone at 1.4667/89 (2016, 2020 highs). On the downside, sustained break of 55 week EMA (now at 1.3282) is needed to confirm medium term topping. Otherwise, outlook will remain bullish even in case of deep pull back.

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