USD/CAD Daily Outlook

Daily Pivots: (S1) 1.0641; (P) 1.0696; (R1) 1.0797; More.

Intraday bias in USD/CAD remains on the upside and decisive break of 1.0744 resistance will confirm that whole correction pattern from 1.0851 has already finished at 1.0223 and will bring stronger rally to retest this resistance next. On the downside, below 1.0678 will turn intraday bias neutral and bring consolidation. But downside should be contained above 1.0544 support and bring rally resumption.

In the bigger picture, we're still favoring the case that whole medium term fall from 1.3063, which is viewed as a correction to long term rise from 0.9056, has completed at 1.0205 already. Break of 1.0851 will confirm this case by completing a double bottom reversal pattern (1.0205, 1.0223). In such case stronger rally should be seen to 61.8% retracement of 1.3063 to 1.0205 at 1.1971 at least. Also, in such case, we'll tentatively treat rise from 1.0205 as resumption of the whole up trend from 2007 low of 0.9056 and focus on the structure of the rise from 1.0205 for confirmation.

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