USD/CAD Daily Outlook

Daily Pivots: (S1) 1.3299; (P) 1.3349; (R1) 1.3378; More….

Intraday bias in USD/CAD is turned neutral as recovery lost moment after hitting 1.3413. On the downside, below 1.330 minor support will extend the corrective fall from 1.3534 through 1.3263. But in that case, 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. On the upside, above 1.3413 will target a test on 1.3534 resistance first. Overall, rise from 1.2968 is expected to resume later to extend through the whole medium term rise from 1.2460 through 1.3598.

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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