Daily Pivots: (S1) 1.3254; (P) 1.3288; (R1) 1.3309; More…
USD/CAD drops further to as low as 1.3226 so far today as fall from 1.3664 extends. There is no sign of bottoming yet. Intraday bias stays on the downside for 61.8% retracement of 1.2781 to 1.3664 at 1.3118. We’ll look for bottoming sign below there. On the upside, above 1.3323 minor resistance will turn bias neutral first.
In the bigger picture, the medium term rise from 1.2061 (2017 low) might continue further. But the structure of such rise is not clearly impulsive so far. Hence, we’d stay cautious on strong resistance from 61.8% retracement of 1.4689 (2016 high) to 1.2061 at 1.3685 and 1.3793 resistance to limit upside, and bring medium term topping. 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).
