Daily Pivots: (S1) 1.2978; (P) 1.3010; (R1) 1.3035; More….
USD/CAD fall continues and reaches as low as 1.2971 so far, just inch above 1.2968 cluster support, 61.8% retracement of 1.2460 to 1.3793 at 1.2969. There is no sign of bottoming yet and intraday bias remains on the downside. As noted before, corrective rise from 1.2460 has completed at 1.3793. Sustained break of 1.2968/69 will pave the way to retest 1.2460 low. On the upside, above 1.3045 minor resistance will argue that a short term bottom could be in place after drawing support from 1.2968/69. In such case, intraday bias will be turned back to the upside for recovery back to 1.3164 support turned resistance.
In the bigger picture, price actions from 1.4689 medium term top are seen as a correction pattern. The first leg has completed at 1.2460. Rise from 1.2460 is seen as the second leg and has completed at 1.3793, ahead of 61.8% retracement of 1.4689 to 1.2460 at 1.3838. Break of 1.3222 should now indicate the start of the third leg while further break of 1.2968 should confirm. In that case, USD/CAD should decline through 1.2460 support to 50% retracement of 0.9406 to 1.4869 at 1.2048.
