USD/CAD Daily Outlook

Daily Pivots: (S1) 1.1468; (P) 1.1524; (R1) 1.1629; More.

USD/CAD continues to stay in range below 1.1581 and some more consolidation might still be seen. But after all, downside is expected to be contained by 1.1226 support and bring resumption of rise from 1.0784. Break of 1.1581 will target 1.1814 resistance next. on the downside, however, below 1.1226 will argue that rebound from 1.0784 has completed and will flip bias back to the downside for retesting this low.

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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