Daily Pivots: (S1) 1.3487; (P) 1.3573; (R1) 1.3725; More…
USD/CAD continues to lose upside momentum ahead of 1.3685 fibonacci level. But with 1.3566 minor support intact, further rise is still in favor. Decisive break of 1.3685 will target 1.3793 key medium term resistance next. On the downside, break of 1.3566 will indicate short term topping and bring deeper pull back to 55 day EMA (now at 1.3319).
In the bigger picture, up trend from 1.2061 (2017 low) is still in progress and should target 61.8% retracement of 1.4689 (2016 high) to 1.2061 at 1.3685. At this point, the structure is not clearly impulsive yet. Hence, we’d be cautious on topping between 1.3685/3793. But in any case, medium term outlook will stay bullish as long as channel support (now at 1.2993) holds. Sustained break of 1.3793 will pave the way to retest 1.4689 (2015 high).
