USD/CAD Mid-Day Outlook

Daily Pivots: (S1) 1.0100; (P) 1.0132; (R1) 1.0155; More.

USD/CAD dives again in early US session and break of 1.0059 minor support argues that consolidation from 1.0326 is still in progress and will extend further. Intraday bias is now on the downside for further decline to 0.9987 support and lower. On the upside, above 1.0141 will argue that such consolidation might have finished and pull focus back to 1.0214 resistance first.

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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