USD/CAD Mid-Day Outlook

Daily Pivots: (S1) 1.0160; (P) 1.0199; (R1) 1.0257; More..

USD/CAD's sharp retreat from 1.0238 continues today but after all it's still supported slightly above 1.0141 support. Outlook remains unchanged. Correction from 1.0322 should have completed at 1.0048 already and further rise should now be seen to retest this high. Break will bring stronger rally to upper end of medium term range near to 1.0378. On the downside, below 1.0141 will flip intraday bias back to the downside and argues that one more fall to 61.8% retracement of 0.9818 to 1.0322 at 1.0011 is to be seen before completing the mentioned correction from 1.0322. Nevertheless, downside is still expected to be contained well 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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