Daily Pivots: (S1) 1.3040; (P) 1.3082; (R1) 1.3118; More….
A temporary top is in place at USD/CAD at 1.3124 and intraday bias is turned neutral first. Some consolidations would be seen. But downside should be contained by 1.2802 support and bring rise resumption. Above 1.3124 will extend recent rally to 161.8% projection of 1.2061 to 1.2916 from 1.2246 at 1.3629 next.
In the bigger picture, we’re favoring the medium term bullish case. That is larger down trend from 1.4689 has completed at 1.2061 as a correction, drawing support from 50% retracement of 0.9406 (2011 low) to 1.4689 (2015 high) at 1.2048. Sustained break of 38.2% retracement of 1.4689 to 1.2061 at 1.3065 will pave the way to 61.8% retracement at 1.3685. This will be the preferred case now as long as 1.2802 support holds.
