USD/CAD Intraday Outlook 19-April-23

USD/CAD Daily Outlook and Analysis

The intraday movement of USD/CAD is neutral, as it continues within a corrective pattern that began at 1.3302. The decline from 1.3863 is viewed as the third stage of this pattern, which originated at 1.3979. If the currency pair experiences another drop, it should find support within the 1.3227 to 1.3264 range, likely causing a rebound. Crossing the 1.3555 threshold would shift the momentum back to the upside and result in a stronger rally.

Looking at the bigger picture, the ongoing uptrend commenced at the low point of 1.2008 in 2021. Breaking above the 1.3979 level would validate the resumption of this trend, with the next target being the 61.8% projection level at 1.4237, derived from the range between 1.2404 and 1.3979 starting at 1.3264. Surpassing this level decisively would lead the way towards the long-term resistance area, which spans from 1.4670 to 1.4692, corresponding to the highs of 2016 and 2020. To confirm a medium-term peak, the currency pair would need to maintain a break below the 55-week exponential moving average, currently situated at 1.3285. If not, the bullish outlook will persist even if there is a substantial pullback.