Daily Pivots: (S1) 1.3293; (P) 1.3347; (R1) 1.3417; More…
USD/CAD’s break of 1.371 minor resistance suggests that pull back from 1.3467 has completed at 1.3250 already. Intraday bias is turned back to the upside for 1.3467. Break there will revive near term bullishness and further rally should be seen to retest 1.3664 key resistance. On the downside, below 1.3250 will turn bias to the downside for 1.3068/3112 support zone.
In the bigger picture, structure of the medium term rise from 1.2061 (2017 low) to 1.3664 is not clearly impulsive. 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 1.3157) holds. Sustained break of 1.3793 will pave the way to retest 1.4689 (2015 high). Firm break of the channel support should confirm reversal target 1.2061 low again.
