Thu, Sep 23, 2021 @ 04:47 GMT

USD/CAD Daily Outlook

Daily Pivots: (S1) 1.2490; (P) 1.2548; (R1) 1.2579; More

USD/CAD’s fall from 1.2805 accelerates lower and focus is now on 1.2485 resistance turned support. Decisive break there will suggest that rise form 1.2005 might have completed. Deeper fall would be seen to next cluster support at 1.2301 (61.8% retracement of 1.2005 to 1.2805 at 1.2311). For now, risk will stay mildly on the downside as long as 1.2605 resistance holds, in case of recovery.

In the bigger picture, fall from 1.4667 is seen as the third leg of the corrective pattern from 1.4689 (2016 high). It should have completed after hitting 1.2061 (2017 low) and 50% retracement of 0.9406 to 1.4689 at 1.2048. Sustained break of 38.2% retracement of 1.4667 to 1.2005 at 1.3022 will pave the way to 61.8% retracement at 1.3650 and above. Overall, medium term outlook remains neutral at worst with 1.2048/61 support zone intact.

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