USD/CAD Mid-Day Outlook

Daily Pivots: (S1) 1.0032; (P) 1.0065; (R1) 1.0124; More.

USD/CAD's choppy price actions continues. Strong rebound from 0.9998 and break of 1.0086 minor resistance indicates fall from 1.0242 has possibly completed and turns outlook neutral again. On the upside, break of 1.0242 resistance is needed to indicate choppy consolidation from 1.0326 has completed and bring retest of this resistance. Otherwise, consolidation could extend further with risk of another fall before completion.

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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