USD/CAD Mid-Day Outlook

Daily Pivots: (S1) 1.0017; (P) 1.0085; (R1) 1.0146; More.

USD/CAD's rebound from 0.9987 extends further to as high as 1.0206 today. Break of 1.0161 resistance indicates that fall from 1.0273 has completed. Also, it suggests that price actions from 1.0326 should be consolidation to rise from 0.9709 only and has completed with three waves down to 0.9987. At this point, further rally should be seen to 1.0326 resistance and then 1.0378 resistance. Meanwhile, on the downside below 1.0058 is needed to revive the case that fall from 1.0326 is still in progress.

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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