USD/CAD Daily Outlook

Daily Pivots: (S1) 1.3242; (P) 1.3274; (R1) 1.3289;

Focus is now on 1.3259 resistance turn support in USD/CAD. Sustained break will indicate completion of rebound from 1.2994. Intraday bias will be turned back to the downside for retesting this 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, as correction to 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.