Daily Pivots: (S1) 1.3283; (P) 1.3334; (R1) 1.3394; More…
Despite breaching 1.3381 to 1.3385, USD/CAD quickly retreated back to established range. Intraday bias remains neutral as consolidation could extend. In case of deeper pull back, downside should be contained above 1.3067 resistance turned support to bring rise resumption. On the upside, firm break of 1.3381 will resume recent rally for 1.3685 medium term fibonacci level next.
In the bigger picture, current development solidify the view of bullish trend reversal. 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. This will now be the preferred case as long as 1.2916 resistance turned support holds, even in case of deep pull back.
