Daily Pivots: (S1) 1.3375; (P) 1.3405; (R1) 1.3457; More…
Intraday bias in USD/CAD remains on the upside for 1.3467 resistance. Break there will reinforce the case that corrective pull back from 1.3664 has completed at 1.3068. USD/CAD should then target a test on 1.3664. On the downside, break of 1.3352 minor support will turn intraday bias neutral again.
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 1.3192) holds. Sustained break of 1.3793 will pave the way to retest 1.4689 (2015 high). However, firm break of the channel support should confirm reversal and target 1.2061 low again.
