USD/CAD Daily Outlook

USD/CAD Daily Outlook

Daily Pivots: (S1) 1.1039; (P) 1.1074; (R1) 1.1110; More...

No change in USD/CAD's outlook. Deeper decline is still mildly in favor. Fall from 1.1194 could be the third leg of the consolidation pattern from 1.1223 and could extend to 1.0909 and further to 38.2% retracement of 1.0181 to 1.1223 at 1.0852. Nonetheless, break of 1.1159 minor resistance will turn bias back to the upside for retesting 1.1223 high instead.

In the bigger picture, rally from 2011 low of 0.9406 is viewed as the third leg of the pattern from 0.9056 low (2007 low). That is, current rise would likely extend through 50% retracement of 1.3063 to 0.9406 at 1.1235 to 61.8% retracement at 1.1666 in medium term. We'd start to look for reversal signal again above 1.1666. But before that, outlook will stay bullish as long as 1.0736 resistance tuned support holds.