USD/CAD Daily Outlook

USD/CAD Daily Outlook

Daily Pivots: (S1) 0.9996; (P) 1.0018; (R1) 1.0032; More.

Upside momentum in USD/CAD is not too convincing for the moment. But as long as 0.9947 support holds, further rally is still expected. Current rebound from 0.9633 should target 61.8% retracement of 1.0455 to 0.9633 at 1.0141 next. On the downside, though, below 0.9947 will flip bias back to the downside for 0.9874 support. Break will argue that rebound from 0.9633 is finished and will bring deeper fall.

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 a 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.