USD/CAD Daily Outlook

Daily Pivots: (S1) 1.3274; (P) 1.3348; (R1) 1.3393;

Intraday bias in USD/CAD remains neutral first. On the downside, sustained break of 1.3259 resistance turned support will argue that rebound from 1.2994 has completed. Intraday bias will be turned back to the downside for retesting 1.2994 low. On the upside, break of 1.3418 will resume the rebound to 38.2% retracement of 1.4667 to 1.2994 at 1.3633, to correct the whole fall from 1.4667.

In the bigger picture, fall from 1.4667 is seen as the third leg of the corrective pattern from 1.4689 (2016 high). Sustained break of 61.8% retracement of 1.2061 to 1.4667 at 1.3056 will target a test on 1.2061 (2017 low). But we’d expect loss of downside momentum as it approaches this key support. On the upside, firm break of 1.3715 resistance will argue that this falling leg has completed and turn focus back to 1.4667/89 resistance zone.