USD/CAD Daily Forecast

Daily Pivots: (S1) 1.0458; (P) 1.0517; (R1) 1.0611; .

Intraday bias remains neutral for the moment as USD/CAD was supported by lower trend line resistance and rebounded strongly. Note that break of 1.0744 resistance is still needed to indicate that choppy consolidation from 1.0851 has completed. Otherwise, such consolidation might still continue with risk of another fall. Below 1.0461 will flip intraday bias back to the downside again. Though, we'd continue to expect downside to be contained above 1.0205 support to conclude such consolidations and bring rise resumption.

In the bigger picture, a medium term bottom might be in place at 1.0205 with bullish convergence conditions in daily MACD. As noted before, fall from 1.3063 is viewed as a correction to long term rise from 0.9056. Such correction might have already completed with three waves down to 1.0205 already (1.0784, 1.1732, 1.0205). Break of 1.1101 resistance will confirm this case and target 61.8% retracement of 1.3063 to 1.0205 at 1.1971 at least. On the downside, break of 1.0205 will invalidate this view and bring down trend resumption to parity instead.

Based on ActionForex.com Technical Outlook