USD/CAD Daily Outlook

USD/CAD Daily Outlook

Daily Pivots: (S1) 1.0235; (P) 1.0305; (R1) 1.0348; More...

USD/CAD's correction from 1.0420 extended lower and deeper decline could be seen. But against, downside should be contained by 1.0216 cluster support (50% retracement of 1.0013 to 1.0420 at 1.0217) and bring rebound. We'd expect recent rally to extend later and above 1.0420 will target 1.0455 resistance first. Break will target 100% projection of 0.9815 to 1.0341 from 1.0013 at 1.0539.

In the bigger picture, price actions from 1.0656 are viewed as a correction pattern and recent development affirmed the case that it's completed at 0.9633 already. Also, USD/CAD managed to stay above 55 weeks EMA and is taken as a sign of medium term bullishness. The rebound from 0.9406 is likely resuming for another high above 1.0656, towards 38.2% retracement of 1.3063 to 0.9406 at 1.0806. We'll stay cautiously bullish as long as 1.0013 holds.