USD/CAD Daily Outlook 06-April-23

USD/CAD Intraday outlook and Analysis

Intraday bias in USD/CAD remains neutral, allowing for consolidation above 1.3410 as a temporary low. The recovery’s upside should be limited by 1.3568 resistance, which is expected to bring another decline. Breaking 1.3410 will resume the downtrend from 1.3865, representing the third leg of the corrective pattern from 1.3981, heading towards the 1.3229/66 support zone. Strong support should be encountered around that zone, leading to a rebound.

In the bigger picture, the uptrend from 1.2010 (2021 low) is still ongoing. A break of 1.3981 would confirm the trend’s resumption, targeting the 61.8% projection of 1.2406 to 1.3981 from 1.3266 at 1.4239. A firm break at that level would pave the way to the long-term resistance zone at 1.4672/94 (2016, 2020 highs). On the downside, a sustained break of the 55-week EMA (now at 1.3287) is necessary to confirm medium-term topping. Otherwise, the outlook will remain bullish, even in the case of a deep pullback.