USD/CAD Daily Outlook

Daily Pivots: (S1) 1.3131; (P) 1.3175; (R1) 1.3200; More…

USD/CAD retreated after hitting 1.3216 and intraday bias is turned neutral again. We’re holding on to the view that corrective pull back from 1.3385 has completed at 1.3063 already. Above 1.3216 will bring retest of 1.3385 first. Break will resume larger rally to 1.3685 fibonacci level. However, firm break of 1.3067 resistance turned support will bring deeper fall to channel support (now at 1.2832).

In the bigger picture, as long as channel support (now at 1.2838) holds, we’ll holding to the bullish view. That is, fall from 1.4689 (2015 high) has completed at 1.2061, ahead of 50% retracement of 0.9406 (2011 low) to 1.4689 (2015 high) at 1.2048. Further rally should be seen for 61.8% retracement of 1.4689 to 1.2061 at 1.3685 and above. However, sustained break of the channel support will argue that rise from 1.2061 has completed and will bring deeper fall to 1.2526 support to confirm.