USD/CAD Mid-Day Outlook

Daily Pivots: (S1) 1.1513; (P) 1.1556; (R1) 1.1605; More.

USD/CAD rises strongly in early US session and is now pressing 1.1636 resistance. Break there will indicate that recent rise from 1.0784 has resumed and should target 1.1814 resistance next. On the downside, below 1.1508 minor support will argue that USD/CAD is still bounded in sideway consolidation instead and bring another fall. But after all, downside is expected to be contained by 1.2260 support and bring rally resumption.

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 1.0940 support will confirm that such rise from 1.0784 has completed. In addition, the corrective structure will aurge 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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