USD/CAD Daily Outlook

Daily Pivots: (S1) 1.1553; (P) 1.1615; (R1) 1.1685; More.

As mentioned before, even though upside momentum in USD/CAD is seen diminishing, another rise is still mildly in favor with 1.1542 minor support intact. Further rally could be seen to 1.1814 key resistance. However, note that a break of 1.1542 minor support will argues that USD/CAD has completed a small diagonal triangle and should have made a short term top. In such case, deeper fall should be seen to 1.0940/1289 support zone to correct the whole rise from 1.0784.

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, considering that daily MACD is now positive too. 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). On the downside, while below 1.1542 indicates a short term top is formed, considering the possible five wave structure of the rise from 1.0784 so far, we'd expect following price actions are corrective in nature and be contained by 1.0940/1289 support zone and bring rally resumption.

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