Daily Pivots: (S1) 1.2481; (P) 1.2506; (R1) 1.2532; More….
No change in USD/CAD’s outlook. While deeper fall could be seen, considering bullish convergence condition in 4 hour MACD, we’ll be cautious on strong support from 1.2460 key support to contain downside and bring rebound. On the upside, break of 1.2608 minor resistance will indicate short term bottoming and turn bias back to the upside for 1.2968 support turned resistance. However, firm break of 1.2460 will target next key fibonacci level at 1.2048.
In the bigger picture, price actions from 1.4689 medium term top are seen as a correction pattern. Fall from 1.3793 is seen as the third leg and should target 50% retracement of 0.9406 to 1.4869 at 1.2048. At this point, we’d look for strong support from there to contain downside and bring rebound. However, firm break there will target 100% projection of 1.4689 to 1.2460 from 1.3793 at 1.1564.
