Daily Pivots: (S1) 1.3181; (P) 1.3210; (R1) 1.3258; More…
USD/CAD’s break of 1.3225 minor resistance suggests that pull back from 1.3340 has completed at 1.3150. Intraday bias is turned back to the upside for for 1.3340 first. Break of 1.3340 will resume the rebound from 1.3068 towards 1.3664 high. On the downside, below 1.3150 will turn focus to 1.3068 low.
In the bigger picture, structure of the medium term rise from 1.2061 (2017 low) to 1.3664 is not clearly impulsive. Hence, we’d stay cautious on strong resistance from 61.8% retracement of 1.4689 (2016 high) to 1.2061 at 1.3685 and 1.3793 resistance to limit upside, and bring medium term topping. But in any case, medium term outlook will stay bullish as long as channel support (now at 1.3109) holds. Sustained break of 1.3793 will pave the way to retest 1.4689 (2015 high). Firm break of the channel support should confirm reversal target 1.2061 low again.
