USD/CAD Daily Outlook

Daily Pivots: (S1) 1.2594; (P) 1.2681; (R1) 1.2726; More

Immediate focus is now on 1.2639 in USD/CAD with the steep fall from 1.2852. Firm break there will argue that rebound from 1.2286 might be finished at 1.2852. Deeper fall would be seen back to 55 day EMA (now at 1.2592). Sustained break there will bring deeper fall to 1.2286 support. Nevertheless, rebound from the current level and break of 1.2742 minor resistance will retain near term bullishness and bring retest of 1.2852.

In the bigger picture, medium term outlook is neutral for now. The pair drew support from 1.2061 cluster and rebounded. Yet, upside was limited below 38.2% retracement of 1.4667 to 1.2005 at 1.3022. On the upside, firm break of 1.3022 should affirm the case of medium term bullish reversal. However, break of 1.2286 will turn focus back to 1.2005 low again.

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