USD/CAD rally takes a break; looks neutral in the short-term.
On the downside, the bears could meet immediate support around the 50% Fibonacci of 1.3221 of the up-leg from 1.2781 to 1.3663, which they failed to overcome last week. If this
Should the pair crawl above the 38.2% Fibonacci of 1.3325, the pair will likely retry to break resistance between 1.3370-1.3385. Slightly higher the 23.6% Fibonacci of 1.3455 could also halt upside movements, though, the 1.3600 round level is expected to be a bigger challenge as any violation at this point could reassure that the uptrend off 1.2781 is not over yet.
Turning to the medium-term picture, the rebound from the 1.3179 level kept the market bullish in the three-month timeframe. A failure to hold above that mark would turn the outlook neutral while a rally above the 1.3663 level would turn the market even more positive.
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