Daily Pivots: (S1) 1.3547; (P) 1.3605; (R1) 1.3642; More…
USD/CAD’s break of 1.3566 minor support suggests short term topping at 1.3664, ahead failing 1.3685 fibonacci level. Intraday bias is now back on the downside for pull back to 38.2% retracement of 1.2781 to 1.3664 at 1.3327. We’d expect downside to be contained there to bring rebound. But on the upside, firm break of 1.3664 is now needed to confirm up trend resumption. Otherwise, risk will stay on the upside even in case of recovery.
In the bigger picture, up trend from 1.2061 (2017 low) is still in progress and should target 61.8% retracement of 1.4689 (2016 high) to 1.2061 at 1.3685. At this point, the structure is not clearly impulsive yet. Hence, we’d be cautious on topping between 1.3685/3793. But in any case, medium term outlook will stay bullish as long as channel support (now at 1.2993) holds. Sustained break of 1.3793 will pave the way to retest 1.4689 (2015 high).
