Daily Pivots: (S1) 1.2633; (P) 1.2662; (R1) 1.2704; More….
USD/CAD’s rally is still in progress and intraday bias remains on the upside. Rebound from 1.2061 is targeting 1.2777 resistance first. Decisive break there will confirm medium term reversal and target 38.2% retracement of 1.4689 to 1.2061 at 1.3065 next. On the downside, below 1.2621 minor support will turn intraday bias neutral first. But outlook will remain bullish as long as 1.2450 support holds.
In the bigger picture, USD/CAD should have defended 50% retracement of 0.9406 (2011 low) to 1.4869 (2016 high) at 1.2048. And with 1.2048 intact, we’d favor the case that fall from 1.4689 is a correction. Break of 1.2777 will further affirm this bullish case. That is, larger up trend from 0.9406 is not completed. And in that case, USD/CAD should target 1.3793 key resistance next. However, on the other hand, firm break of 1.2048 will indicate that fall from 1.4689 is at least a medium term down trend and should target 61.8% retracement at 1.1424 and below.
