USD/CAD Mid-Day Outlook

Daily pivot levels for USD/CAD are as follows: support at (S1) 1.4406, pivot point (P) at 1.4446, and resistance at (R1) 1.4520.

Today, USD/CAD has experienced a significant decline, breaching the key support level at 1.4301. This movement signals a potential short-term peak reached at 1.4484, coupled with a bearish divergence observed on the 4-hour MACD indicator. As a result, the intraday bias has shifted back to the downside.

The downward move from 1.4484 is interpreted as a corrective phase from the rally that began at 1.3418. The current outlook suggests that the next targets could include the 55-day Exponential Moving Average (EMA), situated at around 1.4193, or possibly the 38.2% Fibonacci retracement level, which stands at 1.4077.

In the near term, risks will remain weighted to the downside as long as the 1.4484 level is sustained. In the event of a recovery, that level will serve as a critical resistance point.

Looking at the broader perspective, the upward trend established from the low of 1.2005 in 2021 continues to unfold, with eyes on retesting the significant resistance zone between 1.4667 and 1.4689, which corresponds to highs observed in 2020 and 2015. A decisive breakout above this level would corroborate the resumption of a long-term bullish trend.

Further down the line, the next target on the upside could be the 100% projection derived from the movement between 1.2401 and 1.3976 projected from 1.3418, which is set at 1.4993. The medium-term outlook remains positive as long as the resistance at 1.3976 holds firm, even amidst potential deeper corrections.

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