Daily Pivots: (S1) 1.3104; (P) 1.3166; (R1) 1.3203; More…
USD/CAD recovers ahead of 4 hour 55 EMA but it’s kept well below 1.3225 temporary top. Intraday bias stays neutral for consolidation. At this point, we’re holding on to the view that correction from 1.3385 has completed at 1.2886. Downside of retreat should be contained well above 1.2886 to bring another rally. On the upside, break of 1.3225 will target a test on 1.3385 high.
In the bigger picture, strong rebound ahead of 38.2% retracement of 1.2061 to 1.3385 at 1.2879 key fibonacci level retains medium term bullishness. That is, rise from 2017 low at 1.2061 is still in progress. Break of 1.3384 should target 61.8% retracement of 1.4689 (2015 high) to 1.2061 (2017 low) at 1.3685. On the downside, as long as 1.2886 support holds, outlook will now remain bullish.
