Daily Pivots: (S1) 1.3220; (P) 1.3301; (R1) 1.3343; More…
USD/CAD is staying in consolidation below 1.3381 and intraday bias remains neutral. Deeper pull back could be seen to 4 hour 55 EMA (now at 1.3216) and below. But downside should be contained above 1.2948 support to bring another rally. On the upside, firm break of 1.3381 should target 1.3685 medium term fibonacci level next.
In the bigger picture, current development solidify the view of bullish trend reversal. That is fall from 1.4689 (2015 high) has completed at 1.2061, ahead of 50% retracement of 0.9406 (2011 low) to 1.4689 (2015 high) at 1.2048. Further rally should be seen for 61.8% retracement of 1.4689 to 1.2061 at 1.3685 and above. This will now be the preferred case as long as 1.2916 resistance turned support holds, even in case of deep pull back.
