Daily Pivots: (S1) 1.2649; (P) 1.2733; (R1) 1.2781; More….
USD/CAD drops to as low as 1.2634 so far and intraday bias remains on the downside for 61.8% retracement of 1.2246 to 1.3124 at 1.2581 next. Firm break there will pave the way back to 1.2061/2246 support zone. On the upside, above 1.2730 minor resistance will turn intraday bias neutral first. But near term outlook will remain bearish as long as 1.2814 support turned resistance holds.
In the bigger picture, current development turns favors to the case that rise from 1.2061 is a corrective three wave pattern. It could have completed at 1.3124 after hitting 38.2% retracement of 1.4689 to 1.2061 at 1.3065. Focus is now back on 1.2061 and 50% retracement of 0.9406 (2011 low) to 1.4689 (2015 high) at 1.2048.
