Daily Pivots: (S1) 1.2637; (P) 1.2670; (R1) 1.2724; More….
USD/CAD’s strong rebound and suggests that consolidation from 1.2916 could have completed with three waves down to 1.2623. Intraday bias is back on the upside for 1.2916 resistance first. Break there will resume the rally from 1.2061 and target 1.3065 medium term fibonacci level next. In any case, near term outlook will remain bullish as long as 1.2598 resistance turned support holds.
In the bigger picture, USD/CAD should have defended 50% retracement of 0.9406 (2011 low) to 1.4689 (2016 high) at 1.2048. And with 1.2048 intact, we’d favor the case that fall from 1.4689 is a correction. Rise from 1.2061 medium term bottom should now target 38.2% retracement of 1.4689 to 1.2061 at 1.3065. Firm break there will target 1.3793 key resistance next (61.8% retracement at 1.3685). We’ll now hold on to this bullish view as long as 1.2450 support holds.
