USD/CAD Daily Outlook

Daily Pivots: (S1) 1.1513; (P) 1.1556; (R1) 1.1605; More.

Intraday outlook in USD/CAD remains neutral for the moment as it's still bounded in tight range of 1.1418 and 1.1636. Some sideway trading could still be seen with risk of another fall to 1.1418 and below. But downside is expected to be contained by 1.2260 support and bring rally resumption. Above 1.1636 will target a test of 1.1814 resistance first. However, note break of 1.1226 support will argue that whole 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 1.0940 support will confirm that such rise from 1.0784 has completed. In addition, the corrective structure will aurge 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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