USD CAD Daily Outlook

USD CAD Daily Outlook

Daily Pivots: (S1) 0.9897; (P) 0.9928; (R1) 0.9966;

Intraday bias in USD/CAD stays neutral with focus on 0.9948/74 resistance and 0.9762 support. On the upside, sustained break of 0.9948/74 will have larger bullish implication and will target 61.8% retracement at 1.0141 and above. However, break of 0.9762 will argue that rebound from 0.9633 is finished and fall from 1.0445 is resuming for another low below 0.9633.

In the bigger picture, price action from 1.0656 are viewed as a correction pattern, no change in this view. There is not much evidence that such consolidation is completed yet. Though, sustained break of above mentioned 38.2% retracement level at 0.9948 will be a first sign that such correction is finished. In such case, focus will be turned back to 1.0445 resistance for confirmation. Meanwhile, in case of another fall, 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.