USD/CAD’s decline from 1.3382 resumed by breaking 1.3133 support last week. Initial bias stays on the downside this week for 100% projection of 1.3382 to 1.3133 from 1.3347 at 1.3098 first. Sustained break there will pave the way to 1.3016 low next. On the upside, above 1.3171 minor resistance will turn intraday bias neutral and bring consolidation first, before staging another decline.
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.
