USD/CAD Mid-Day Outlook

Daily Pivots: (S1) 1.3143; (P) 1.3202; (R1) 1.3256; More….

USD/CAD’s fall extends to as low as 1.3075 so far today. Intraday bias remains on the downside for 1.2968 cluster support, 61.8% retracement of 1.2460 to 1.3793 at 1.2969. Decisive break there will confirm our bearish view that whole corrective rise from 1.2460 has completed at 1.3793. On the upside, above 1.3207 minor resistance will turn bias neutral and bring recovery. But break of 1.3346 resistance is needed to indicate short term bottoming. Otherwise, outlook will remain bearish.

In the bigger picture, price actions from 1.4689 medium term top are seen as a correction pattern. The first leg has completed at 1.2460. Rise from 1.2460 is seen as the second leg and has completed at 1.3793, ahead of 61.8% retracement of 1.4689 to 1.2460 at 1.3838. Break of 1.3222 should now indicate the start of the third leg while further break of 1.2968 should confirm. In that case, USD/CAD should decline through 1.2460 support to 50% retracement of 0.9406 to 1.4869 at 1.2048.

USD/CAD 4 Hours Chart

USD/CAD Daily Chart

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