Daily Pivots: (S1) 1.2983; (P) 1.3041; (R1) 1.3113; More…
Intraday bias in USD/CAD remains on the downside for 1.2916 support. Current development suggests rejection by near term channel resistance, on bearish divergence condition in 4 hour MACD. Break of 1.2916 will likely extend the choppy corrective fall from 1.3385 through 1.2781 low. On the upside, break of 1.3132 resistance is now needed to confirm rise resumption. Otherwise, risk will remain on the downside even in case of recovery.
In the bigger picture, rejection from the channel resistance from 1.3385 suggests that such corrective fall is not completed yet. And, a new low below 1.2781 would likely be seen. Nevertheless, we’d expect strong support inside 1.2527/1.2723 zone to contain downside to resume the up trend from 1.2061. The support zone represents 50% and 61.8% retracement of 1.2061 to 1.3385. On the upside, break of 1.3132 resistance will target a test on 1.3385 high.
