The USD/CAD pair has shown some interesting movements recently, with a break of the 1.3652 resistance level indicating a possible short-term bottom at 1.3588. This comes after the pair hit support at 1.3589. The intraday bias is now leaning towards the upside, targeting the 1.3790 resistance level. However, a significant break below 1.3589 could extend the corrective pattern and push the pair towards 1.3534.
Looking at the bigger picture, the price actions from the 1.3976 high in 2022 are seen as a corrective pattern. If there is another downward movement, strong support is expected to hold above the 1.2947 resistance turned support level, leading to a potential rebound. A decisive break above 1.3976 would confirm the continuation of the overall uptrend from the 1.2005 low in 2021. The next target after such a breakout would be the 61.8% projection of the move from 1.2401 to 1.3976 from 1.3176, which stands at 1.4149.
It’s important for traders and investors to keep an eye on these key levels and price movements to make informed decisions in the volatile forex market. The USD/CAD pair’s behavior at these support and resistance levels could provide valuable insights into its future direction and potential trading opportunities. By staying informed and analyzing the market trends, market participants can better navigate the ups and downs of the currency pair and position themselves for success.