USD/CAD Daily Outlook

USD/CAD Daily Outlook

Daily Pivots: (S1) 1.0120; (P) 1.0153; (R1) 1.0196; More...

USD/CAD's rally continues as expected and reaches as high as 1.0192 so far. Intraday bias remains on the upside and current rally from 0.9815 is expected to extend to 100% projection of 0.9633 to 1.0056 from 0.9815 at 1.0238 next. On the downside, below 1.0137 minor support will turn bias neutral and bring consolidations. But retreat should be contained well above 0.9999 support and bring another rally.

In the bigger picture, price actions 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.