USD/CAD Mid-Day Outlook

Daily Pivots: (S1) 1.3087; (P) 1.3129; (R1) 1.3153; More….

USD/CAD’s break of 1.3102 suggests resumption of fall from 1.3327. Intraday bias is back on the downside for 1.3042 key support. Decisive break here will carry larger bearish implications. On the upside, break of 1.3181 resistance is needed to indicate short term bottoming. Otherwise, outlook will stay mildly bearish in case of recovery.

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.