USD/CAD Daily Outlook

USD/CAD Daily Outlook

Daily Pivots: (S1) 0.9912; (P) 0.9936; (R1) 0.9957; More.

Intraday bias in USD/CAD remains on the downside for the moment. The decline from 1.0056 short term top could extend to 38.2% retracement of 0.9633 to 1.0056 at 0.9894 and below. Though, as long as 0.9874 support holds. Rise from 0.9633 is still in favor to continue. Above 0.9981 minor resistance will turn bias back to the upside for retesting 1.0056 first. But sustained break of 0.9874 will argue that whole rise from 0.9633 is already completed and will turn near term outlook bearish.

In the bigger picture, price action from 1.0656 are viewed as a correction pattern, no change in this view. We're still slightly favoring the case that such correction is completed with three waves down to 0.9633. But this is farm from being certain and break of 1.0045 is needed to be the confirmation. Meanwhile, break of 0..9874 support will indicate that such correction is going to make another low below 0.9633 before completion. In any case, we'd still expect any downside attempt to be contained above 0.9406 low. Eventually, we'd expect another medium term rise to 38.2% retracement of 1.3063 to 0.9406 at 1.0803.