Daily Pivots: (S1) 1.3236; (P) 1.3277; (R1) 1.3351; More…
USD/CAD’s sharp fall suggests temporary topping at 1.3329 and intraday bias is turned neutral first. Further rise remains in favor with 1.3229 minor support intact. Above 1.3329 will target 1.3375. Decisive break there should confirm completion of whole fall from 1.3664. In that case, further rise should be seen back to retest 1.3664. On the downside, below 1.3229 minor support bring deeper pull back towards 1.3068 support.
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 1.3070) 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.
