Daily Pivots: (S1) 1.3123; (P) 1.3149; (R1) 1.3185; More…
Intraday bias in USD/CAD remains neutral with focus on 1.3049 minor support. Firm break there will indicate completion of rebound from 1.2961. Intraday bias will be turned back to the downside for this support. Sustained break there will carry lower bearish implication and bring deeper fall. On the upside, above 1.3173 will revive the bullish case of near term reversal and target 1.3289 resistance next.
In the bigger picture, as long as channel support (now at 1.2965) 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.
