USD/CAD Mid-Day Outlook

Daily Pivots: (S1) 1.2728; (P) 1.2755; (R1) 1.2783; More….

USD/CAD rises sharply in early US session and focus is back on 1.2819 minor resistance. Break there will argue that correction from 1.2916 has completed at 1.2665 already. Intraday bias will be turned back to the upside for 1.2916 high first. Break there will extend the rise from 1.2061 to 38.2% retracement of 1.4689 to 1.2061 at 1.3065. In case the correction from 1.2916 extends with another fall, overall outlook will remain bullish as long as 1.2598 resistance turned support holds.

In the bigger picture, USD/CAD should have defended 50% retracement of 0.9406 (2011 low) to 1.4689 (2016 high) at 1.2048. And with 1.2048 intact, we’d favor the case that fall from 1.4689 is a correction. Rise from 1.2061 medium term bottom should now target 38.2% retracement of 1.4689 to 1.2061 at 1.3065. Firm break there will target 1.3793 key resistance next (61.8% retracement at 1.3685). We’ll now hold on to this bullish view as long as 1.2450 support holds.

USD/CAD 4 Hours Chart

USD/CAD Daily Chart

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