Daily Pivots: (S1) 1.3403; (P) 1.3473; (R1) 1.3511; More…
USD/CAD’s decline from 1.3564 extends lower today. Break of 1.3429 support suggests that whole rise from 1.3357 has completed at 1.3564. More importantly, considering bearish divergence in 4 hour MACD, it’s also the first sign of bearish reversal. Intraday bias is now back on the downside for retesting 1.3357 support next. Decisive break there will indicate completion of larger rise from 1.3068.
In the bigger picture, USD/CAD is staying well inside medium term rising channel (support at 1.3335). 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 of the channel support will be the first sign of medium term reversal. Firm break of 1.3068 would confirm.
