Daily Pivots: (S1) 1.3184; (P) 1.3227; (R1) 1.3291; More….
USD/CAD recovered after dipping to 1.3164 and intraday bias is turned neutral first. Some consolidation would be seen but recovery is expected to be limited by 1.3387 support turned resistance to bring fall resumption. Current development affirms our view that corrective rise from 1.2460 has completed at 1.3793. Below 1.3164 will target next key level at 1.2968 (38.2% retracement of 1.2460 to 1.3793 at 1.2969) for confirmation.
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.
