Daily Pivots: (S1) 1.3111; (P) 1.3163; (R1) 1.3262; More…
Despite dipping to 1.3063, USD/CAD drew strong support from 1.3067 key resistance turned support and rebounded. Break of 1.3173 indicates that corrective pull back from 1.3385 has completed already. Intraday bias is turned back to the upside for retesting 1.3385 first. Break will resume larger rally to 1.3685 fibonacci level. In case of another retreat, we’d continue to extend strong support from 1.3067 to contain downside.
In the bigger picture, as long as channel support (now at 1.2838) holds, we’ll holding to the bullish view. 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. However, sustained break of the channel support will argue that rise from 1.2061 has completed and will bring deeper fall to 1.2526 support to confirm.
