USD/CAD Mid-Day Outlook

Daily Pivots: (S1) 1.1468; (P) 1.1524; (R1) 1.1629; More.

USD/CAD's rally resumes by taking out 1.1581 and reaches as high as 1.1636 so far. At this point, intraday bias remains on the upside as long as 1.1418 minor support holds and further rally should be seen to 1.1814 resistance. Break will target next key cluster resistance at 1.2191. On the downside, below 1.1418 will turn intraday outlook neutral first and bring consolidation. But another rise is still in favor as long as 1.1226 support holds.

In the bigger picture, fall from 1.3063 is treated as correction to impulsive rally from 0.9056 to 1.3063 and has met target support zone of 1.0297/0819 already. We're slightly favoring the case that such correction has completed at 1.0754 already. Break of mentioned 1.1475/1.1814 resistance zone will confirm this case and should at least bring strong rally to key cluster resistance at 1.2191 (61.8% retracement of 1.3063 to 1.7084 at 1.2192). Nevertheless, a break below 1.0784 will indicate that fall from 1.3063 is still in progress, probably to 61.8% retracement of 0.9056 to 1.3063 at 1.0587 before completion.

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