USD/CAD Mid-Day Outlook

Daily Pivots: (S1) 1.2983; (P) 1.3041; (R1) 1.3113; More…

USD/CAD’s strong rebound today dampens the bearish case and intraday bias is turned neutral first. On the upside, break of 1.3132 resistance will also have near term falling channel taken out. That will add to the case that whole fall from 1.3385 has completed. Intraday bias will be turned back to the upside for 1.3225 resistance for confirmation. On the downside, break of 1.2969 should finally confirm completion of rebound form 1.2781. Intraday bias will be turned back to the downside for this 1.2781 support.

In the bigger picture, rejection from the channel resistance from 1.3385 suggests that such corrective fall is not completed yet. And, a new low below 1.2781 would likely be seen. Nevertheless, we’d expect strong support inside 1.2527/1.2723 zone to contain downside to resume the up trend from 1.2061. The support zone represents 50% and 61.8% retracement of 1.2061 to 1.3385. On the upside, break of 1.3132 resistance will target a test on 1.3385 high.