Daily Pivots: (S1) 1.3086; (P) 1.3185; (R1) 1.3253; More…
USD/CAD’s fall from 1.3664 resumed by taking out 1.3180 and reaches as low as 1.3118 so far. Intraday bias is back on the downside for 61.8% projection of 1.3664 to 1.3180 from 1.3375 at 1.3076 next. Break will target 100% projection at 1.2891. On the upside, break of 1.3203 minor resistance will turn intraday bias neutral and bring consolidation. But further decline is expected as long as 1.3375 resistance holds.
In the bigger picture, structure of the medium term rise from 1.2061 (2017 low) 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)..
