USD/CAD’s rebound from 1.3133 extended to 1.3347 last week but formed a temporary top there. Initial bias is neutral this week for some consolidation first. Further rally is expected as long as 1.3206 support holds. Break of 1.3347 will target 1.3382 resistance first. Break will resume whole rise from 1.3016. However, break of 1.3206 will turn bias to the downside for 1.3133 support instead.
In the bigger picture, key cluster support of 1.3068 (38.2% retracement of 1.2061 to 1.3664 at 1.3052) remains intact. Medium term rise from 1.2061 low is in favor to resume sooner or later. Firm break of 61.8% retracement of 1.4689 (2016 high) to 1.2061 at 1.3685 will confirm and target 1.4689 high. However, sustained break of 1.3052/68 will confirm completion of up trend from 1.2061 (2017 low). Further fall should be seen to 61.8% retracement at 1.2673 next.
In the longer term picture, outlook remains unchanged that price actions from 1.4689 (2016 high) are forming a corrective pattern. As long as 1.2061 support holds. up trend from 0.9406 (2011 low) in in favor to resume through 1.4689 at a later stage.
