USD/CAD Daily Outlook

Daily Pivots: (S1) 1.1394; (P) 1.1474; (R1) 1.1625; More.

USD/CAD edges further higher to 1.1576 so far today and at this point, intraday bias remains on the upside for 1.1814 resistance next. On the downside, below 1.1487 will suggest that an intraday top is formed and turn outlook neutral first. But break of 1.1230 support is needed to indicate that USD/CAD's rebound from 1.0784 has completed. Otherwise, short term outlook will remain bullish.

In the bigger picture, fall from 1.3063 is treated as correction to impulsive rally from 0.9056 to 1.3063 and has met target support zone of 1.0297/0819 already. We're slightly favoring the case that such correction has completed at 1.0754 already. Break of mentioned 1.1475/1.1814 resistance zone will confirm this case and should at least bring strong rally to key cluster resistance at 1.2191 (61.8% retracement of 1.3063 to 1.7084 at 1.2192). Nevertheless, a break below 1.0784 will indicate that fall from 1.3063 is still in progress, probably to 61.8% retracement of 0.9056 to 1.3063 at 1.0587 before completion.

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