Daily Pivots: (S1) 1.3456; (P) 1.3480; (R1) 1.3502; More…
USD/CAD dives sharply as fall from 1.3505 accelerates. Still, outlook is unchanged that price actions from 1.3521 are seen as a corrective pattern. While break of 1.3376 minor support cannot be ruled out, downside should be contained above 1.3274 support to bring rise resumption. On the upside, firm break of 1.3521 will resume the whole rise from 1.3068 to retest 1.3664 high. However, decisive break of 1.3274 support will indicate completion of 1.3068 and turn outlook bearish.
In the bigger picture, USD/CAD is staying well inside medium term rising channel (support at 1.3278). 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.
