Daily Pivots: (S1) 1.2924; (P) 1.2950; (R1) 1.2979; More….
USD/CAD rises to as high as 1.3034 so far. Break of 1.3000 confirms rally resumption. Intraday bias is back on the upside for 1.3065 medium term fibonacci level. Sustained break there will pave the way to next fibonacci level at 1.3685. On the downside, below 1.2920 minor support will turn bias neutral first. But near term outlook will stay bullish as long as 1.2802 support holds.
In the bigger picture, we’re favoring the medium term bullish case. That is larger down trend from 1.4689 has completed at 1.2061, drawing support from 50% retracement of 0.9406 (2011 low) to 1.4689 (2015 high) at 1.2048. Further rally should be seen back to 38.2% retracement of 1.4689 to 1.2061 at 1.3065 first. Break will target 61.8% retracement at 1.3685. This will be the preferred case now as long as 1.2687 support holds.
