Daily Pivots: (S1) 1.3408; (P) 1.3431; (R1) 1.3466; More…
USD/CAD’s sharp decline and break of 1.3352 minor support suggests that rebound from 1.3250 has completed at 1.3451 already. Intraday bias is turned back to the downside for 1.3250 support. Firm break there will indicate completion of whole rebound from 1.3068. In that case, deeper fall would be seen back to 1.3068.3112 support zone. On the upside, break of 1.3467 will target a test on 1.3664 high.
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 1.3192) holds. Sustained break of 1.3793 will pave the way to retest 1.4689 (2015 high). However, firm break of the channel support should confirm reversal and target 1.2061 low again.
