Fri, Jun 09, 2023 @ 01:50 GMT

USD/CAD Mid-Day Outlook

Daily Pivots: (S1) 1.2976; (P) 1.3014; (R1) 1.3067; More

A temporary top should be formed at 1.3050 with current retreat. Intraday bias in USD/CAD is turned neutral first. But still, further rally will remain in favor as long as 1.2712 support holds. Sustained break of 1.3022 fibonacci level will carry larger bullish implications. Next target will be 100% projection of 1.2005 to 1.2947 from 1.2401 at 1.3343. However, break of 1.2712 will indicate rejection by 1.3022 fibonacci level and turn bias to the downside.

In the bigger picture, focus stays on 38.2% retracement of 1.4667 (2020 high) to 1.2005 (2021 low) at 1.3022. Sustained break there should confirm that the down trend from 1.4667 has completed after defending 1.2061 long term cluster support. Further rise would then be seen towards 61.8% retracement at 1.3650. However, rejection by 1.3022 will maintain medium term bearishness. Break of 1.2005 will resume the down trend from 1.4667 and that carries larger bearish implications too.

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