USD/CAD Daily Outlook

USD/CAD Daily Outlook

Daily Pivots: (S1) 1.0427; (P) 1.0455; (R1) 1.0497; More...

USD/CAD recovers ahead of 1.0397 support but stays in range of 1.0397 and 1.0525. Intraday bias remains neutral for the moment. We'd remain cautious on reversal at the current level, just below the near term falling trend line. Break of 1.0397 will turn bias to the downside for 1.0264 and below. But sustained break of near term falling trend line (now at 1.0492) will likely extend larger rally through 1.0608 resistance.

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 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 0.9633 support.