Daily Pivots: (S1) 1.3293; (P) 1.3333; (R1) 1.3377; More

Intraday bias in USD/CAD remains neutral first. With 1.3371 minor resistance intact, further decline is in favor. Break of 1.3289 will extend the fall from 1.3467 to 1.3068/3112 support zone. Nevertheless, on the upside, above 1.3371 will suggest that pull back from 1.3467 has completed. That will also revive the bullish case that rise from 1.3068 is still in progress. In such case, intraday bias will be turned back to 1.3467 resistance and above.

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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 1.3157) 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.

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