Daily Pivots: (S1) 1.3261; (P) 1.3290; (R1) 1.3326; More…
USD/CAD’s rebound from 1.3180 extends today. Break of 1.3323 minor resistance suggests short term bottoming. Intraday bias is turned back to the upside for retesting 1.3664 high. We’d be cautious on strong resistance from there to limit upside. On the downside, break of 1.3180 will resume the fall from 1.3664 to 61.8% retracement of 1.2781 to 1.3664 at 1.3118.
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 1.3036) holds. Sustained break of 1.3793 will pave the way to retest 1.4689 (2015 high).
