Daily Pivots: (S1) 1.2977; (P) 1.3013; (R1) 1.3056; More…..
Upside momentum in USD/CAD is quite unconvincing as seen in 4 hour MACD. But with 1.2967 minor support intact, intraday bias remains on the upside. Current rise from 1.2526 should target a test on 1.3124 resistance next. Decisive break there should confirm medium term trend reversal. Nonetheless, below 1.2967 minor support will dampen the bullish case and turn bias neutral again.
In the bigger picture, we’re favoring the case that that rebound from 1.2061 has not completed yet. Focus is back on 38.2% retracement of 1.4689 to 1.2061 at 1.3065. Sustained trading above there will confirm medium term bullish reversal. That is, down trend from 1.4689 has completed at 1.2061 already. In that case, next target will be 61.8% retracement at 1.3685. However, break of 1.2526 support will dampen this bullish view again. And, focus will be back on 1.2061 key support level, which is close to 50% retracement of 0.9406 (2011 low) to 1.4689 (2015 high) at 1.2048.
