Daily Pivots: (S1) 1.3316; (P) 1.3338; (R1) 1.3376; More…
USD/CAD surges to as high as 1.3441 so far in early US session. Intraday bias remains on the upside and outlook is unchanged. The pull back from 1.3664 should have completed at 1.3068. Further rise should be seen for retesting 1.3664 and then 1.3685 fibonacci level. On the downside, below 1.3329 minor support will turn bias neutral first.
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 1.3118) 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.
