USD/CAD Daily Outlook

USD/CAD Daily Outlook

Daily Pivots: (S1) 1.0003; (P) 1.0023; (R1) 1.0034; More...

As noted before, consolidation fro 1.0099 is possibly still in progress and deeper fall could be seen back to 0.9932. . Though, we'd expect strong support from 61.8% retracement of 0.9815 to 1.0099 at 0.9923 to bring rebound. An eventual upside breakout is still anticipated and break of 1.0099 will extend recent rise from 0.9633 to 100% projection of 0.9633 to 1.0056 from 0.9815 at 1.0238 next.

In the bigger picture, price action from 1.0656 are viewed as a correction pattern, no change in this view. Current development affirmed that case that such correction has completed at 0.9633 already and medium term rally from 0.9406 is resuming. Focus is back to 1.0445 resistance and decisive break there will confirm our bullish view and target 38.2% retracement of 1.3063 to 0.9406 at 1.0803. In any case, we'll stay cautiously bullish as long as 0.9815 support holds.