Daily Pivots: (S1) 1.2462; (P) 1.2508; (R1) 1.2534; More….
Dollar’s fall accelerates to as low as 1.2366 so far and breaks 61.8% retracement of 1.2061 to 1.2919 at 1.2389. Based on current momentum, it’s getting more likely that fall from 1.2919 is resuming larger down trend. Intraday bias stays on the downside as long as 1.2480 minor resistance holds. Sustained trading below 1.2389 will pave the way to 1.2061 low. On the upside, above 1.2480 will turn intraday bias neutral first.
In the bigger picture, current near term downside acceleration argues that USD/CAD was rejected by 55 week EMA (now at 1.2850. And the rebound from 1.2061 is possibly completed at 1.2919. More importantly, larger fall from 1.4689 (2016 high) could be resuming. Decisive break of 1.2061 low will target 61.8% retracement of 0.9406 to 1.4689 at 1.1424. Nonetheless, break of 1.2623 will revive the original case of bullish reversal and would resume the rebound from 1.2061 to 38.2% retracement of 1.4689 to 1.2061 at 1.3065.
