Mon, Mar 27, 2023 @ 16:37 GMT

USD/CAD Mid-Day Outlook

Daily Pivots: (S1) 1.3305; (P) 1.3331; (R1) 1.3353; More….

USD/CAD’s fall accelerates in early US session and reaches as low as 1.3270 so far. Intraday bias remains on the downside for 1.3263 support. Break there will confirm resumption of whole decline from 1.3534 and target 1.3184 cluster level. (61.8% retracement of 1.2968 to 1.3534 at 1.3184, 100% projection of 1.3534 to 1.3263 from 1.3455 at 1.3814 too). As such decline is seen as a correction, we’d expect strong support from 1.3184 to contain downside and bring rebound. On the upside, above 1.3356 minor resistance will turn intraday bias neutral first. But for now, deeper decline is expected as long as 1.3455 resistance holds.

In the bigger picture, price actions from 1.4689 medium term top are seen as a correction pattern. The first leg has completed at 1.2460. The second leg from 1.2460 is likely still in progress and could target 61.8% retracement of 1.4689 to 1.2460 at 1.3838. We’d look for reversal signal there to start the third leg. However, break of 1.2968 will argue that the third leg has already started and should at least bring a retest of 1.2460 low. Meanwhile, sustained trading above 1.3838 would pave the way to retest 1.4689 high.

USD/CAD 4 Hours Chart

USD/CAD Daily Chart

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