USD/CAD Mid-Day Outlook

Daily Pivots: (S1) 1.3280; (P) 1.3300; (R1) 1.3317; More…

USD/CAD drops sharply after more upbeat than expected BoC statement. But it’s staying above 1.3190 support. Intraday bias remains neutral first. As long as 1.3190 holds, further rise is still expected in the pair. On the upside, break of 1.3327 will resume the rise from 1.3042 to 1.3347/82 resistance zone. Firm break there will suggest completion of consolidation from 1.3664. However, break of 1.3190 will indicate completion of the rebound and turn bias back to the downside for 1.3042 support.

In the bigger picture, 38.2% retracement of 1.2061 to 1.364 at 1.3052 remains intact. Medium term rise from 1.2061 low is in favor to resume sooner or later. Firm break of 61.8% retracement of 1.4689 (2016 high) to 1.2061 at 1.3685 will confirm and target 1.4689 high. However, sustained break of 1.3052 will confirm completion of up trend from 1.2061 (2017 low). Further fall should be seen to 61.8% retracement at 1.2673 next.