USD/CAD Intraday Outlook 17-April-23

USD/CAD Daily Outlook and Analysis

The intraday stance for USD/CAD currently remains neutral. The drop from 1.3864 is perceived as the third part of the correction originating from 1.3980. If another downturn occurs, it should find support within the 1.3228/65 range, ultimately leading to a rebound. Breaking through 1.3556 would shift the bias toward a more robust rally.

Looking at the broader picture, the uptrend that started at 1.2009 (the 2021 low) remains underway. Surpassing 1.3980 would confirm the trend’s continuation, targeting the 61.8% projection of 1.2405 to 1.3980 from 1.3265 at 1.4238. A firm break at this level will pave the way to the long-term resistance zone at 1.4671/93 (2016 and 2020 highs). On the downside, a sustained break of the 55-week EMA (currently at 1.3286) is required to confirm a medium-term topping. Otherwise, the outlook will remain bullish, even in the event of a significant pullback.