Daily Pivots: (S1) 1.3555; (P) 1.3586; (R1) 1.3606; More…
Despite diminishing upside momentum as seen in 4 hour MACD, with 1.3511 minor support intact, further rise is expected in USD/CAD to 1.3685 fibonacci level next. Break there will target 1.3793 key medium term resistance. On the downside, below 1.3511 minor support will bring lengthier consolidation. But downside should be contained above 1.3322 support to bring another rally.
In the bigger picture, up trend from 1.2061 (2017 low) is still in progress and should target 61.8% retracement of 1.4689 (2016 high) to 1.2061 at 1.3685. At this point, the structure is not clearly impulsive yet. Hence, we’d be cautious on topping between 1.3685/3793. But in any case, medium term outlook will stay bullish as long as channel support (now at 1.2991) holds. Sustained break of 1.3793 will pave the way to retest 1.4689 (2015 high).
