Daily Pivots: (S1) 1.3406; (P) 1.3451; (R1) 1.3512; More…
USD/CAD’s rally resumed by breaking 1.3444 resistance and hits as high as 1.3496 so far. Intraday bias is back on the upside. Current rise is part of the up trend from 1.2061 and would target 1.3685 fibonacci level next. On the downside, below 1.3390 minor support will turn bias neutral and bring consolidations, before staging another rally.
In the bigger picture, up trend from 1.2061 (2017 low) is still in progress and should target to 61.8% retracement of 1.4689 (2016 high) to 1.2061 at 1.3685. However, such rise is not clearly impulsive yet. And it could be the second leg of the long term corrective pattern that started at 1.4689. Hence, even in case of further rally, we’d be cautious on loss of momentum and topping above 1.3685. Nevertheless, in any case, outlook will stay bullish as long as channel support (now at 1.2972) holds.
