USD/CAD Daily Outlook

Daily Pivots: (S1) 1.2969; (P) 1.2997; (R1) 1.3050; More…

USD/CAD’s strong rebound and break of 1.2975 support turned resistance suggests that fall from 1.3225 has completed at 1.2883 already. Also, 1.2879 key fibonacci level remains intact and thus, we’re staying bullish in the pair. That is, larger rise from 1.2061 is expected to resume after consolidation from 1.3385 completes. Intraday bias is back on the upside for 1.3063 resistance first. Break will target 1.3225 key near term resistance. On the downside, however, break of 1.2971 minor support will turn focus back on 1.2879 fibonacci level.

In the bigger picture, focus is back on 38.2% retracement of 1.2061 to 1.3385 at 1.2879 key fibonacci level. As long as it holds, rise from 2017 low at 1.2061 is still in progress. Break of 1.3384 should target 61.8% retracement of 1.4689 (2015 high) to 1.2061 (2017 low) at 1.3685. However, sustained break of 1.2879 will dampen his bullish view and turn focus back to 61.8% retracement at 1.2567, which is close to 1.2526 support.