Daily Pivots: (S1) 1.3157; (P) 1.3183; (R1) 1.3229; More….
USD/CAD’s break of 1.3259 resistance suggests resumption of the rebound from 1.2994. Intraday bias is back on the upside for 38.2% retracement of 1.4667 to 1.2994 at 1.3633. At this point, we’re viewing the rebound as a corrective move. Hence, we’d look for topping sign around there. Meanwhile, on the downside, break of 1.3137 minor support is needed to indicate completion of the rebound. Otherwise, further rise will remain in favor in case of retreat.
In the bigger picture, fall from 1.4667 is seen as the third leg of the corrective pattern from 1.4689 (2016 high). Sustained break of 61.8% retracement of 1.2061 to 1.4667 at 1.3056 will target a test on 1.2061 (2017 low). But we’d expect loss of downside momentum as it approaches this key support. On the upside, though, break of 1.3715 resistance is needed to confirm completion of the fall. Otherwise, outlook will stay bearish.
