Daily Pivots: (S1) 1.3131; (P) 1.3156; (R1) 1.3197; More…
With 4 hour MACD crossed above signal line, intraday bias in USD/CAD is turned neutral first. For now, the correction from 1.3385 is still in favor to continue. Below 1.3114 will target 1.3063 support and then 100% projection of 1.3385 to 1.3063 from 1.3289 at 1.2967. But we’d expect strong support from rising channel line (now at 1.2893) to contain downside and bring rebound. Larger rally from 1.2061 is expected to resume later.
In the bigger picture, as long as channel support (now at 1.2893) holds, we’re holding to the bullish view. That is, fall from 1.4689 (2015 high) has completed at 1.2061, ahead of 50% retracement of 0.9406 (2011 low) to 1.4689 (2015 high) at 1.2048. Further rally should be seen for 61.8% retracement of 1.4689 to 1.2061 at 1.3685 and above. However, sustained break of the channel support will argue that rise from 1.2061 has completed and will bring deeper fall to 1.2526 support to confirm.
