Daily Pivots: (S1) 1.3161; (P) 1.3181; (R1) 1.3213; More….
Intraday bias in USD/CAD remains on the upside as this point and further rise should be seen to 1.3327 resistance. We’re favoring the case that corrective pattern from 1.3664 has completed as a triangle at 1.2951. Break of 1.3327 should confirm this bullish view and pave the way for a retest on 1.3664 high. In any case, near term outlook will remain bullish as long as 1.3117 support holds, in case of retreat.
In the bigger picture, rise from 1.2061 (2017 low) could have completed at 1.3664, after failing 61.8% retracement of 1.4689 (2016 high) to 1.2061 at 1.3685. However, structure of price actions from 1.3664 argues that it’s probably just a corrective move. Hence, while further fall cannot be ruled out, downside should be contained by 50% retracement of 1.2061 to 1.3664 at 1.2863.
