Daily Pivots: (S1) 1.3060; (P) 1.3079; (R1) 1.3114; More….
USD/CAD’s rally is in progress and reaches as high as 1.3121 so far. Intraday bias remains on the upside. Rise from 1.2061 should now target 161.8% projection of 1.2061 to 1.2916 from 1.2246 at 1.3629 next. On the downside, below 1.3046 minor support will turn intraday bias neutral first and bring consolidations. 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 as a correction, drawing support from 50% retracement of 0.9406 (2011 low) to 1.4689 (2015 high) at 1.2048. Sustained break of 38.2% retracement of 1.4689 to 1.2061 at 1.3065 will pave the way to 61.8% retracement at 1.3685. This will be the preferred case now as long as 1.2802 support holds.
