USD/CAD Mid-Day Outlook

Daily Pivots: (S1) 1.0213; (P) 1.0239; (R1) 1.0257; More.

USD/CAD's edged higher to 1.0307 earlier today but subsequent sharp fall dragged 4 hours MACD below signal line, suggesting that an intraday top is already in place. At this point, intraday bias is flipped back to the downside and further pull back should be seen to 1.0137 cluster support or lower. Though, downside is expected to be contained by 1.0014 resistance turn support and bring resumption of rebound.

In the bigger picture, the corrective nature of the fall from 1.0378 indicates that it's merely a correction to whole rise from 0.9056. In other words, such medium term rebound from 0.9056 is still expected to extend further and break of 1.0378 will confirm this case and bring rally to 61.8% projection of 0.9056 to 1.0378 from 0.9709 at 1.0526 or higher. On the downside, below 1.0014 again will dampen this view and turn outlook neutral first.

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