USD/CAD Mid-Day Outlook

Daily Pivots: (S1) 1.0817; (P) 1.0914; (R1) 1.0987; More.

USD/CAD's decline extends further to as low as 1.0798 so far today and intraday bias remains on the downside for 1.0784 low first. Break will confirm that whole decline from 1.3063 is resuming and should target target 61.8% retracement of 0.9056 to 1.3063 at 1.0587 next. On the upside, above 1.0923 will turn intraday outlook neutral and bring consolidation. But recovery should be limited by 1.1223 resistance and bring fall resumption.

In the bigger picture, there is no change in the view that fall from 1.3063 is a correction to five wave rally from 0.9056. Nevertheless, current development indicates that such decline is not completed yet and could extend further to 61.8% projection of 1.3063 to 1.0784 from 1.1723 at 1.0315. But, such decline is still expected to conclude inside support zone of 1.0297/0819. Though, above 1.1723 resistance is now needed to indicate that such decline has completed. Otherwise, risk remains on the downside in case of recovery.

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