USD/CAD Mid-Day Outlook

Daily Pivots: (S1) 0.9995; (P) 1.0069; (R1) 1.0112; More.

USD/CAD weakens mildly today but after all it's still staying in established range above 0.9987. Outlook remains unchanged. While further consolidation could be seen upside should be limited below 1.0161 cluster resistance and bring another fall. Below 0.9987 will indicate decline from 1.0273 has resumed for the lower side of established range near to 0.9709 support.

In the bigger picture, the corrective nature of the fall from 1.0378 indicates that it's merely a correction, or part of consolidation, to whole rise from 0.9056. Failure below 1.0378 resistance suggests that such medium term rebound is not ready to resume yet. More choppy sideway trading could now be seen between 0.9709 and 1.0378. But still, further rally is in favor as long as 0.9709 support holds. Above 1.0378 will confirm whole rise from 0.9056 has resumed to 61.8% projection of 0.9056 to 1.0378 from 0.9709 at 1.0526 or higher. Though break of 0.9709 will indicate that the correction from 0.9056 could have completed and short term bias will then be turned back to the downside for retesting this low.

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