USD/CAD Mid-Day Outlook

Daily Pivots: (S1) 1.3051; (P) 1.3065; (R1) 1.3086; More….

USD/CAD rises sharply to as high as 1.3140 and break of 1.3104 suggests resumption of rebound from 1.2951. Intraday bias is back on the upside. Sustained trading above 55 day EMA (now at 1.3126) will pave the way to 1.3327 resistance. Considering bullish convergence condition in daily MACD, the corrective fall from 1.3664 might be finished as a triangle at 1.2951. Decisive break of 1.3327 will confirm this bullish case. For now, further rise will remain in favor as long as 1.3036 support holds, in case of retreat.

In the bigger picture, rise from 1.2061 (2017 low) could have completed at 1.3664, after failing 61.8% retracement of 1.4689 (2016 high) to 1.2061 at 1.3685. However, structure of price actions from 1.3664 argues that it’s probably just a corrective move. Hence, while further fall is expected, downside should be contained by 50% retracement of 1.2061 to 1.3664 at 1.2863.