Daily Pivots: (S1) 1.3385; (P) 1.3423; (R1) 1.3476; More…
USD/CAD’s pull back from 1.3521 was contained at 1.3376 and recovered. Break of 1.3439 minor resistance turns intraday bias back to the upside for 1.3521 resistance. Break will resume the whole rise from 1.3068 to retest 1.3664 high. On the downside, below 1.3376 will turn bias to the downside for 1.3274 support. 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.
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.
