Daily Pivots: (S1) 1.3337; (P) 1.3385; (R1) 1.3410; More…
USD/CAD’s fall resumed after brief recovery and intraday bias is turned back to the downside. Current development suggests that choppy rise from 1.3068 has completed at 1.3564, on bearish divergence condition in daily MACD. Sustained trading below 1.3357 support should confirm this bearish case and target 1.3274support next. More importantly, that could also have medium term channel support taken out, which carries larger bearish implications too. However, break of 1.3430 resistance will revive near term bullishness and turn bias back to retest 1.3564.
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) could 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.
