Daily Pivots: (S1) 1.3120; (P) 1.3145; (R1) 1.3184; More…
USD/CAD’s rise from 1.2781 is still in progress and edges higher today. While upside momentum is diminishing, current rally is still expected to continue to 1.3225 resistance. Decisive break there will confirm that whole choppy decline from 1.3385 has completed. And in that case, further rally should be seen to retest 1.3385. On the downside, however, break of 1.3068 support will mix up the outlook again and turn bias back to the downside.
In the bigger picture, current development revives the case that corrective fall from 1.3385 has completed at 1.2781 already. And whole up trend from 1.2061 (2016 low) is ready to resume. Break of 1.3385 will target 61.8% retracement of 1.4689 (2016 high) to 1.2061 at 1.3685. This will now be the favored case as long as 1.2781 support holds.
