Daily Pivots: (S1) 1.2278; (P) 1.2348; (R1) 1.2385; More…
USD/CAD drops to as low as 1.2286 so far today. The break of 1.2363 support confirms resumption of whole down trend form 1.4668. Intraday bias stays on the downside for 100% projection of 1.2880 to 1.2363 from 1.2653 at 1.2136. On the upside, above 1.2417 minor resistance will turn intraday bias neutral first. But recovery should be limited below 1.2653 resistance to bring fall resumption.
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, sustained break of 1.2653 resistance is needed to be the first sign of medium term bottoming. Otherwise, outlook will remain bearish in case of strong rebound.
