USD/CAD Mid-Day Outlook

Daily Pivots: (S1) 1.2650; (P) 1.2676; (R1) 1.2728; More….

USD/CAD’s rally continues to as high as 1.2757 so far today and intraday bias remains on the upside. Rebound from 1.2246 should be targeting 100% projection of 1.2246 to 1.2687 from 1.2450 at 1.2891, which is close to 1.2919 key resistance. We’d be cautious on strong resistance from there to limit upside. On the downside, below 1.2624 minor support will turn intraday bias neutral first. But further rally would be mildly in favor as long as 1.2450 support holds.

In the bigger picture, the rebound from 1.2246 is mixing up the medium term outlook. Nonetheless, USD/CAD is staying below falling 55 week EMA (now at 1.2776), hence, the bearish case is in favor. That is, fall from 1.4689 is not completed yet. Sustained break of 1.2061 key support will carry larger bearish implication and target 61.8% retracement of 0.9406 to 1.4689 at 1.1424. However, firm break of 1.2919 will revive the case of medium term reversal and turn outlook bullish.

USD/CAD 4 Hours Chart

USD/CAD Daily Chart

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