Daily Pivots: (S1) 1.3332; (P) 1.3375; (R1) 1.3398; More…
USD/CAD’s retreat from 1.3467 is still in progress and intraday bias remains neutral. Deeper fall cannot be ruled out but downside should be contained by 1.3301 support to bring another rally. Corrective fall from 1.3664 has completed at 1.3068 already. Break of 1.3467 will target 1.3664 resistance then 1.3685 fibonacci level.
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 1.3139) 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.
