Daily Pivots: (S1) 1.3354; (P) 1.3417; (R1) 1.3454; More…
USD/CAD’s fall from 1.3521 is deeper than expected and break of 1.3399 minor support raises the chance of near term reversal. Intraday bias is turned back to the downside for 1.3274 support first. Break will indicate that choppy rebound from 1.3068 has completed at 1.3521. Near term outlook will be turned bearish for retesting 1.3068 support. On the upside, though, above 1.3439 minor resistance will revive near term bullishness and turn bias back to the upside for 1.3521. Break of 1.3521 will extend the rise from 1.3068 to retest 1.3664 high.
In the bigger picture, USD/CAD is staying well inside medium term rising channel (support at 1.3255). Thus, the up trend from 1.2061 (2017 low) should be in progress. On the upside, decisive break of 61.8% retracement of 1.4689 (2016 high) to 1.2061 at 1.3685 will pave the way to 78.6% retracement at 1.4127 next. This will remain the favored case as long as 1.3068 support holds. However, sustained break the channel support will be the first sign of medium term reversal. Firm break of 1.3068 would confirm.
