USD/CAD Mid-Day Outlook

Daily Pivots: (S1) 1.0000; (P) 1.0088; (R1) 1.0137; More.

The flag like consolidation from 1.0326 continues as USD/CAD has another dip today. After all, there is no indication of completion of such consolidation yet. Though, downside is expected to be contained well above 0.9709 support and bring rally resumption. Break of 1.0242 resistance will be an important signal that such consolidation has completed and will encourage further rise to 1.0378 resistance and then 61.8% projection of 0.9056 to 1.0378 from 0.9709 at 1.0526.

In the bigger picture, the corrective nature of the fall from 1.0378 to 0.9709 indicates that it's merely a correction, or part of consolidation, to whole rise from 0.9056. Such rebound from 0.9056 is expected to extend further to to above 61.8% projection of 0.9056 to 1.0378 from 0.9709 at 1.0526 on resumption. Though, break of 0.9709 support 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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