Daily Pivots: (S1) 1.3424; (P) 1.3446; (R1) 1.3479; More…
USD/CAD is losing some upside momentum as seen in 4 hour MACD. But intraday bias stays on the upside with 1.3413 minor support intact. Current rise from 1.3068 should extend to retest 1.3664 and then 1.3685 fibonacci level. On the downside, below 1.3413 will turn intraday bias neutral and bring consolidation first, before staging another rise.
In the bigger picture, structure of the medium term rise from 1.2061 (2017 low) to 1.3664 is not clearly impulsive. Hence, we’d stay cautious on strong resistance from 61.8% retracement of 1.4689 (2016 high) to 1.2061 at 1.3685 and 1.3793 resistance to limit upside, and bring medium term topping. But in any case, medium term outlook will stay bullish as long as channel support (now at 1.3118) holds. Sustained break of 1.3793 will pave the way to retest 1.4689 (2015 high). Firm break of the channel support should confirm reversal target 1.2061 low again.
