Daily Pivots: (S1) 1.3313; (P) 1.3343; (R1) 1.3382; More…
USD/CAD’s fall from 1.3534 resumed by taking out 1.3275 and reaches as low as 1.3263 so far. Intraday bias is back on the downside for 1.3211 cluster level (61.8% retracement of 1.3008 to 1.3534 at 1.3209). As such decline is viewed as a correction pattern, we’d expect downside to be contained by 1.3209/11 to bring rebound. On the upside, break of 1.3377 resistance will turn bias back to the upside for 1.3534 resistance and then 1.3598. However, sustained break of 1.3211 will dampen this view and target 1.2968 key support level next.
In the bigger picture, price actions from 1.4689 medium term top are seen as a correction pattern. The first leg has completed at 1.2460. The second leg is likely still in progress and could target 61.8% retracement of 1.4689 to 1.2460 at 1.3838. We’d look for reversal signal there to start the third leg. Break of 1.2968 wold at least bring at retest of 1.2460 low. However, sustained trading above 1.3838 would pave the way to retest 1.4689 high.
