Daily Pivots: (S1) 1.3123; (P) 1.3149; (R1) 1.3185; More…
USD/CAD edges higher again and breaches 1.3170 but upside momentum remains unconvincing. Nonetheless, we’re staying cautiously bullish in the pair. The corrective pull back from 1.3385 should have completed at 1.2961 already. Further rise should be seen to 1.3289 resistance for confirmation. Break there will also likely resume larger rise from 1.2061 through 1.3385 high. On the downside, though, break of 1.3049 minor support will dampen this bullish view and turn focus back to 1.2961 low instead.
In the bigger picture, as long as channel support (now at 1.2958) holds, we’re 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.
