USD/CAD Mid-Day Outlook

Daily Pivots: (S1) 1.0151; (P) 1.0198; (R1) 1.0243; More.

USD/CAD's strong rebound from 1.0152 and break of 1.0245 minor resistance indicates that retreat from 1.0322 has completed there. Intraday bias is flipped back to the upside for retest 1.0322. Break will confirm whole rise from 0.9818 has resumed for upper end of medium term range near to 1.0378. However failure below 1.0322 will suggest that consolidation from 1.0322 is still in progress with another fall before completion. Though, downside should be contained above 0.9957 resistance turned support and bring rally resumption.

In the bigger picture, after all, USD/CAD is still staying in established range of 0.9709 and 1.0378. The corrective nature of the price actions inside this range argues that it's merely consolidation to the whole rebound from 0.9056. While further choppy sideway trading could still be seen, the rise from 0.9056 is still expected to extend further as long as 0.9709 support holds. Break of 1.0378 will bring rise to 61.8% projection of 0.9056 to 1.0378 from 0.9709 at 1.0526 and above. 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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