USD/CAD Mid-Day Outlook

Daily Pivots: (S1) 1.0424; (P) 1.0459; (R1) 1.0493; More.

No change in USD/CAD's outlook. Further decline is still in favor as long as 1.0593 resistance holds. Though, downside of the correction from 1.0727 is expected to be contained above 1.0273 cluster support (61.8% retracement of 0.9974 to 1.0727 at 1.0262) and bring rally resumption. oN the upside, break of 1.0593 minor resistance will flip intraday back to the upside for 1.0727 high. Break will indicate recent rally has resumed for 1.0791/98 cluster resistance.

In the bigger picture, medium term rise from 0.9056 is still in progress towards mentioned 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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