Daily Pivots: (S1) 1.3711; (P) 1.3767; (R1) 1.3806; More….
No change in USD/CAD’s outlook as correction from 1.4667 is still in progress. We’d continue to expect strong support around 61.8% retracement of 1.3202 to 1.4667 at 1.3762 to bring rebound. On the upside, break of 1.3866 minor resistance will turn bias back to the upside for 1.4048 resistance. However, sustained break of 1.3762 will suggest deeper decline is underway for 61.8% projection of 1.4667 to 1.3855 from 1.4048 at 1.3546 next.
In the bigger picture, at this point, we’re still seeing rise from 1.2061 (2017 low) as resuming up trend from 0.9056 (2007 low). Decisive break of 1.4689 (2016 high) will confirm this bullish case. However, rejection by 1.4689, followed by 1.3664 support will suggest that rise from 1.2061 is merely part of the corrective pattern from 1.4689 and has completed. The pattern would have started another falling leg to 1.2951 support and possibly further to 1.2061.
