USD/CAD Daily Outlook

Daily Pivots: (S1) 1.3444; (P) 1.3493; (R1) 1.3575; More….

USD/CAD recovered after hitting 1.3386 and intraday bias is turned neutral first. On the upside, firm break of 1.3351 minor resistance will invalidate the head and shoulder top pattern. Bias will be turned back to the upside for 1.3807 resistance first, and then retest of 1.3976 high. On the downside, break of 1.3386 will resume the correction from 1.3976 towards 1.3207 cluster support (61.8% retracement of 1.2726 to 1.3976 at 1.3204).

In the bigger picture, up trend from 1.2005 (2021 low) is still in progress. Based on current impulsive momentum, it could be resuming long term up trend from 0.9056 (2007 low). Whether it is or it isn’t, retest of 1.4689 (2016 high) should be seen next. This will now remain the favored case as long as 1.3222 resistance turned support holds.

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