USD/CAD Mid-Day Outlook

Daily Pivots: (S1) 0.9964; (P) 1.0054; (R1) 1.0111; More.

USD/CAD recovers after diving to 0.9998 but after fall, intraday bias remains on the downside as long as 1.0086 minor resistance holds. The strength of the decline from 1.0242 indicates that it should be another falling leg of the consolidation that started at 1.0326. Further fall should be seen to support zone of 61.8% retracement of 0.9709 to 1.0326 at 0.9945 and 100% projection of 1.0326 to 0.9987 from 1.0242 at 0.9903 before completing the consolidation. On the upside, above 1.0086 will turn intraday outlook neutral first. But another fall is still in favor as long as recovery is limited below 1.0242.

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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