Daily Pivots: (S1) 1.3166; (P) 1.3191; (R1) 1.3206; More…
USD/CAD’s consolidation from 1.3151 is still in progress and intraday bias remains neutral first. Upside of recovery should be limited well below 1.3432 resistance to bring fall resumption. On the downside, break of 1.3151 will extend the fall from 1.3564 to target 1.3052/68 cluster support.
In the bigger picture, medium term outlook stays neutral for now even though the case of bearish reversal is building up. Decisive break of 1.3068 cluster support (38.2% retracement of 1.2061 to 1.3664 at 1.3052) will confirm completion of up trend from 1.2061 (2017 low). Further fall should be seen to 61.8% retracement at 1.2673 next. On the upside, sustained break of 61.8% retracement of 1.4689 (2016 high) to 1.2061 at 1.3685, is needed to confirm resumption of up trend from 1.2061 (2017 low). Otherwise, risk will stay on the downside.
