USD/CAD Mid-Day Outlook

Daily Pivots: (S1) 1.2997; (P) 1.3054; (R1) 1.3163; More…

USD/CAD’s rally continues today and reaches as high as 1.3174 so far. Intraday bias remains on the upside. Further rally should be seen to 100% projection of 1.2246 to 1.3124 from 1.2526 at 1.3404 next. On the downside, below 1.3085 minor support will turn intraday bias neutral and bring consolidation first, before staying another rally.

In the bigger picture, the current development affirms our bullish view. That is, firstly, rebound from 1.2061 is not finished yet. Secondly, the medium term decline from 1.4689 (2016 high) has completed and the trend is reversing. Sustained trading above 38.2% retracement of 1.4689 to 1.2061 at 1.3065 will confirm our view and target 61.8% retracement at 1.3685 and above. 1.3685. However, break of 1.2526 support will dampen this bullish view again. And, focus will be back on 1.2061 key support level, which is close to 50% retracement of 0.9406 (2011 low) to 1.4689 (2015 high) at 1.2048.