Daily Pivots: (S1) 1.2426; (P) 1.2477; (R1) 1.2528; More….
USD/CAD is staying in consolidation above 1.2412 and intraday bias remains neutral first. On the upside, above 1.2575 minor resistance will extend the rebound from 1.2412 and target 38.2% retracement of 1.3346 to 1.2412 at 1.2769. On the downside, break of 1.2412 will extend recent fall from 1.3793 to 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.
