USD/CAD Mid-Day Outlook

Daily Pivots: (S1) 1.0028; (P) 1.0085; (R1) 1.0132; More.

USD/CAD's choppy range trading continues and rebounds strongly after diving to 1.0036. Outlook remains unchanged so far. Price actions from 1.0326 i treated as consolidation to rally from 0.9709 and there is no confirmation of completion yet. Above 1.0214 is needed to be the first alert that such consolidation has completed and bring rise towards 2.0325 resistance and higher. Meanwhile, below 1.0036 will shift intraday bias back to the downside for 0.9987 as consolidation continues.

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.

Subscribe to our daily and mid-day newsletter to get this report delivered to your mail box