USD/CAD Daily Outlook

Daily Pivots: (S1) 1.0641; (P) 1.0711; (R1) 1.0778; More.

Intraday bias in USD/CAD remains neutral for the moment and consolidations from 1.0779 continues. Deeper retreat to 4 hours 55 EMA (now at 1.0631) might be seen. But still, downside is expected to be contained by 1.0544 support and bring rally resumption. Above 1.0779 will bring retest of 1.0851 resistance next.

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.

Subscribe to our daily and mid-day newsletter to get this report delivered to your mail box