USD/CAD Daily Outlook

USD/CAD Daily Outlook

Daily Pivots: (S1) 1.0376; (P) 1.0407; (R1) 1.0448; More...

USD/CAD rises to as high as 1.0437 so far and the break of 1.0419 confirmed resumption of rally from 1.0181. Intraday bias remains on the upside and current rally should target 100% projection of 1.0181 to 1.0419 from 1.0264 at 1.0502. We'd be cautious on strong resistance from near term falling trend line (now at 1.0518). On the downside, below 1.0365 minor support will turn bias neutral and bring consolidations first.

In the bigger picture, price actions from 0.9406 are viewed as a consolidation pattern with rise from 0.9633 as the third leg. Current development is rather mixed as the lack of follow through selling argue that rise from 0.9633 might not be completed yet. But in case of another rise, we'd expect strong resistance from 38.2% retracement of 1.3063 to 0.9406 at 1.0803 to limit upside and finally bring reversal. Meanwhile, below 1.0181 should confirm reversal and target