Daily Pivots: (S1) 1.2898; (P) 1.2934; (R1) 1.2968; More…..
USD/CAD’s break of 1.3046 suggests that rise from 1.2526 has resumed. And the development affirms our bullish view. Intraday bias is back on the upside for 1.3124 key resistance Decisive break there will carry larger bullish implication. For now, near term outlook will stay cautiously bullish as long as 1.2817 support holds, in case of retreat.
In the bigger picture, we’re favoring the case that that rebound from 1.2061 has not completed yet. But there is no follow through upside momentum so far. Focus remains on 38.2% retracement of 1.4689 to 1.2061 at 1.3065. Sustained trading above there will confirm medium term bullish reversal. That is, down trend from 1.4689 has completed at 1.2061 already. In that case, next target will be 61.8% retracement at 1.3685. However, break of 1.2526 support will dampen this bullish view again. And, focus will be back on 1.2061 key support level, which is close to 50% retracement of 0.9406 (2011 low) to 1.4689 (2015 high) at 1.2048.
