Daily Pivots: (S1) 1.2734; (P) 1.2767; (R1) 1.2815; More….
USD/CAD’s breach of 1.2928 support turned resistance suggests short term bottoming at 1.2688, on bullish convergence condition in 4 hour MACD. Intraday bias is mildly on the upside. Break of 55 day EMA will target 1.3172 resistance. On the downside, break of 1.2688 low is now needed to confirm down trend resumption. Otherwise, risk will be mildly on the upside for more correction.
In the bigger picture, fall from 1.4667 is seen as the third leg of the corrective pattern from 1.4689 (2016 high). Further decline should be seen back to 1.2061 (2017 low). In any case, break of 1.3389 resistance is needed to indicate medium term bottoming. Otherwise, outlook will remain bearish in case of rebound.
