Daily Pivots: (S1) 1.3152; (P) 1.3184; (R1) 1.3246; More…
Intraday bias in USD/CAD remains on the upside at this point. Rebound from 1.3068 short term bottom is in progress for 1.3375 resistance. Decisive break there will indicate completion of whole fall from 1.3664. In that case, further rise should be seen back to retest 1.3664. On the downside, below 1.3172 minor support will turn bias back to the downside for 1.3068. But we’d stay cautious on bottoming near to channel support (now at 1.3061).
In the bigger picture, structure of the medium term rise from 1.2061 (2017 low) to 1.3664 is not clearly impulsive. 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 1.3049) holds. Sustained break of 1.3793 will pave the way to retest 1.4689 (2015 high). Firm break of the channel support should confirm reversal target 1.2061 low again.
