Daily Pivots: (S1) 1.3300; (P) 1.3323; (R1) 1.3346; More…
No change in USD/CAD’s outlook as it’s staying in consolidation from 1.3239. Intraday bias remains neutral at this point. Upside of recovery should be limited by 1.3363 support turned resistance to bring fall resumption. Choppy rise from 1.3068 has completed at 1.3564 already. Fall from 1.3564 is likely resuming the decline from 1.3664 medium term top. Break of 1.3239 will turn bias back to the downside for 1.3052/68 cluster support. However, sustained break of 1.3363 will mix up the near term outlook and bring stronger rebound first.
In the bigger picture, the strong break of medium term channel support now argues that up trend from 1.2061 (2017 low) has completed at 1.3664 (2018 high), just ahead of 61.8% retracement of 1.4689 (2016 high) to 1.2061 at 1.3685, and 1.3793 resistance. Decisive break of 1.3068 cluster support (38.2% retracement of 1.2061 to 1.3664 at 1.3052) will confirm and pave the way to 61.8% retracement at 1.2673 next. For now, risk will remain on the downside as long as 1.3564 resistance holds, even in case of strong rebound.
