Daily Pivots: (S1) 1.3343; (P) 1.3394; (R1) 1.3433; More…
USD/CAD drops sharply in early US session as the pull back from 1.3444 accelerates, after failing to sustained above 1.3385 key resistance. But at this point, USD/CAD is held well above 1.3160 support. Thus, there is no indication of near term bearish reversal yet. Intraday bias is turned neutral first. On the upside, break of 1.3444 and sustained trading above 1.3385 will extend medium term up trend to 1.3685 fibonacci level. On the downside, though, break of 1.3160 support will indicate rejection by 1.3385 resistance and turn near term outlook bearish.
In the bigger picture, up trend from 1.2061 (2017 low) is still in progress and decisive break of 1.3385 will pave the way to 61.8% retracement of 1.4689 (2016 high) to 1.2061 at 1.3685. In case correction from 1.3382 extend with another falling leg, downside should be contained by 50% retracement of 1.2061 to 1.3385 at 1.2723 to bring rebound.
