Daily Pivots: (S1) 1.2141; (P) 1.2172; (R1) 1.2215; More…
Intraday bias in USD/CAD remains neutral first, with focus on 1.2201 resistance. Decisive break there will suggest near term bullish reversal, after drawing support from 1.2048/61 cluster level. Intraday bias will be turned back to the upside for 1.2363/2653 resistance zone. On the downside, however, sustained break of 1.2048/61 will carry larger bearish implications. Next near term target will be 161.8% projection of 1.2880 to 1.2363 from 1.2653 at 1.1816.
In the bigger picture, fall from 1.4667 is seen as the third leg of the corrective pattern from 1.4689 (2016 high). We’d look for strong support from 1.2061 (2017 low) and 50% retracement of 0.9406 to 1.4689 at 1.2048 to bring rebound. Nevertheless, sustained break of 1.2363 support turned resistance is needed to be the first sign of medium term bottoming. Otherwise, outlook will remain bearish in case of strong rebound. Also, sustained break of 1.2061 will pave the way to 61.8% retracement of 0.9406 to 1.4689 at 1.1424.
