USD/CAD Mid-Day Outlook

Daily Pivots: (S1) 1.3660; (P) 1.3698; (R1) 1.3729; More

USD/CAD’s solid break of 1.3784 resistance confirm resumption of the rally from 1.3091. Intraday bias is back on the upside for retesting 1.3976 high. Decisive break there will resume larger up trend. On the downside, below 1.3729 minor support will turn intraday bias neutral and bring consolidations. But near term outlook will remain bullish as long as 1.3568 support holds.

In the bigger picture, current development revives the case that corrective pattern from 1.3976 (2022 high) has completed with three waves down to 1.3091. Decisive break of 1.3976 high will confirm resumption of up trend from 1.2005 (2021 low). Next target will be 61.8% projection of 1.2401 to 1.3976 from 1.3091 at 1.4064. This will now remain the favored case as long as 1.3378 support holds.

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