USD/CAD Mid-Day Outlook

Daily Pivots: (S1) 1.0591; (P) 1.0658; (R1) 1.0703; More.

No change in USD/CAD's outlook, With an intraday top in place at 1.0727, some more sideway trading could still be seen. Nevertheless, consolidation should be relatively brief as long as 1.0538 minor support holds. Above 1.0727 will indicate recent rise has resumed for mentioned 1.0791/98 cluster resistance. Below 1.0538 will indicate that a short term top is in place and bring correction to 4 hours 55 EMA (now at 1.0510) and lower. But downside should be contained above 1.0273 support and bring rally resumption.

In the bigger picture, break of 1.0378 confirms that medium term rise from 0.9056 has resumed and is now set to test cluster resistance at 1.0791/98 (61.8% retracement of 1.1874 to 0.9056 at 1.0798, 61.8% projection of 0.9056 to 1.0378 from 0.9974 at 1.0791) first. Sustained break of 1.0791/98 will argue that rise from 0.9056 is probably more than just a correction in the long term down trend and will set the stage to test key long term resistance at 1.1874. On the downside, a break below 0.9974 support is needed to confirm that rise from 0.9056 has completed. Otherwise, further rally is still expected even in case of a deep pull back.

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