USD/CAD Daily Outlook

Daily Pivots: (S1) 1.3296; (P) 1.3352; (R1) 1.3386; More….

USD/CAD’s rebound lost momentum after hitting 1.3408. 4 hour MACD crossed below signal line again and it’s held by near term trend line too. Intraday bias is turned neutral first. On the upside, above 1.3408 will affirm the case that pull back from 1.3534 has completed. And, intraday bias will be back on the upside for retesting 1.3534. Break there will target 1.3598 high. On the downside, in case of another fall, we’d expect strong support from 1.3211 cluster level (61.8% retracement of 1.3008 to 1.3534 at 1.3209) to contain downside and bring rebound. Overall, we’re still expecting the medium term rise from 1.2460 to resume later.

In the bigger picture, price actions from 1.4689 medium term top are seen as a correction pattern. The first leg has completed at 1.2460. The second leg is likely still in progress and could target 61.8% retracement of 1.4689 to 1.2460 at 1.3838. We’d look for reversal signal there to start the third leg. Break of 1.2968 wold at least bring at retest of 1.2460 low. However, sustained trading above 1.3838 would pave the way to retest 1.4689 high.

USD/CAD 4 Hours Chart

USD/CAD Daily Chart

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