Daily Pivots: (S1) 1.3332; (P) 1.3354; (R1) 1.3377; More…
USD/CAD retreats after hitting 38.2% retracement of 1.3664 to 1.3180 at 1.3365. Intraday bias is turned neutral first. On the upside, firm break of 1.3665 will extend the rebound from 1.3180 to t 61.8% retracement at 1.3479. We’d look for strong resistance from 1.3479 to limit upside. On the downside, break of 1.3231 will likely resume fall from 1.3664 to 61.8% retracement of 1.2781 to 1.3664 at 1.3118.
In the bigger picture, the medium term rise from 1.2061 (2017 low) might continue further. But the structure of such rise is not clearly impulsive so far. Hence, we’d stay cautious on strong resistance from 61.8% retracement of 1.4689 (2016 high) to 1.2061 at 1.3685 and 1.3793 resistance to limit upside, and bring medium term topping. But in any case, medium term outlook will stay bullish as long as channel support (now at 1.3036) holds. Sustained break of 1.3793 will pave the way to retest 1.4689 (2015 high).
