USD/CAD Mid-Day Outlook

Daily Pivots: (S1) 1.0840; (P) 1.0963; (R1) 1.1115; More.

USD/CAD retreats mildly after reaching as high as 1.1089. Nevertheless, intraday bias remains on the upside as long as 1.0950 minor support holds. Further rally is still expected to next upside target of 100% projection o 0.9823 to 1.0819 from 1.0297 at 1.1293. On the downside, below 1.0950 will indicate that a short term top might be in place and bring retreat towards 1.0723 support. But downside should be contained there and bring rally resumption.

In the bigger picture, sustained trading above 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) confirm that medium term rise from 0.9056 has resumed. Also, this adds more credence to the case that whole long term down trend from 1.6196 (02 high) has bottomed out at 0.9056 too. The medium term up trend from there will likely extend further to test next key long term resistance at 1.1874 (38.2% retracement of 1.6196 to 0.9056 at 1.1783). On the downside, while some pull back might be seen, break of 1.0297 is now needed to indicate a top is formed. Otherwise, further rise is still in favor.

Subscribe to our daily and mid-day newsletter to get this report delivered to your mail box