Daily Pivots: (S1) 1.2691; (P) 1.2714; (R1) 1.2749; More…
USD/CAD’s break of 1.2742 minor resistance suggests that pull back from 1.2852 has completed at 1.2604 already. Rise from 1.2286 might be ready to resume. Intraday bias is turned back to the upside for 1.2852 first. Break will confirm this case and target 1.2947 resistance. On the downside, however, firm break of 1.2604 will argue that rise from 1.2286 has completed. Deeper fall would be seen back to 1.2286 support.
In the bigger picture, medium term outlook remains neutral for now. The pair drew support from 1.2061 cluster and rebounded. Yet, upside was limited below 38.2% retracement of 1.4667 to 1.2005 at 1.3022. On the upside, firm break of 1.3022 should affirm the case of medium term bullish reversal. However, break of 1.2286 will turn focus back to 1.2005 low again.
