USD/CAD Daily Outlook

Daily Pivots: (S1) 0.9936; (P) 0.9956; (R1) 0.9988; More...

With 1.0050 resistance intact, deeper decline is still expected in USD/CAD for 0.9891 support. Break there will resume whole decline from 1.0656 100% projection of 1.0656 to 0.9891 from 1.0522 at 0.9757. However, note that break of 1.0050 will indicate that a short term bottom is at least formed and bring rebound back to near term channel resistance (now at 1.0122).

In the bigger picture, a medium term bottom is in place at 0.9406 and price actions from there could either be consolidation to fall from 1.3063 or the third leg of the whole consolidation pattern from 2007 low of 0.9056. We're favoring neither case for the moment. Firstly, we'd expect 0.9406 to hold for a while at least. Secondly, the eventual pattern of the price actions from 1.0656 would decide whether rebound from 0.9406 is going to extend higher, or USD/CAD is just gyrating in range. We'll stay neutral first until the pattern from 1.0656 finishes.

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