USD/CAD Daily Outlook

USD/CAD Daily Outlook

Daily Pivots: (S1) 1.1059; (P) 1.1095; (R1) 1.1151; More...

Intraday bias in USD/CAD remains neutral for the moment. Bearish divergence condition in 4 hours MACD argues that the pair might be topping in near term. Break of 1.1031 will confirm this case and bring deeper pull back to 55 days EMA (now at 1.0806). For now, sustained break of 1.1235 is needed to confirm rally resumption. Otherwise, outlook will be neutral and we'd anticipate a correction sooner or later.

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.