USD/CAD Daily Outlook

USD/CAD Daily Outlook

Daily Pivots: (S1) 0.9965; (P) 0.9984; (R1) 1.0022; More.

Intraday bias in USD/CAD remains on the upside with focus on 1.0019. Break there will confirm resumption of rebound from 0.9633 and should target 61.8% retracement of 1.0455 to 0.9633 at 1.0141 next. Meanwhile, below 0.9947 minor support will turn bias neutral again and extend the consolidation from 1.0019 with another fall. Though, after all, as long as 0.9762 support holds, rebound from 0.9633 is still in favor to continue.

In the bigger picture, price action from 1.0656 are viewed as a correction pattern, no change in this view. The sustained trading above 55 days EMA serves as the first signal that such correction is finished at 0.9633. Though, it's far from being certain. Focus will stay on 1.0445 key resistance level 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.