Daily Pivots: (S1) 1.2762; (P) 1.2793; (R1) 1.2843; More….
USD/CAD’s strong rebound and break of 1.2859 minor resistance argues that pull back from 1.2996 has completed at 1.2728 already. Intraday bias is back on the upside for 1.2996 first. Break will affirm our bullish view that rebound from 1.2061 hasn’t completed. Retest of 1.3124 key resistance should be seen next. This bullish case will remain in favor as long as 1.2728 support holds.
In the bigger picture, current development suggests that rebound from 1.2061 has not completed yet. Focus is back on 38.2% retracement of 1.4689 to 1.2061 at 1.3065. Sustained trading above there will confirm medium term bullish reversal. That is, down trend from 1.4689 has completed at 1.2061 already. In that case, next target will be 61.8% retracement at 1.3685. However, break of 1.2526 support will dampen this bullish view again. And, focus will be back on 1.2061 key support level, which is close to 50% retracement of 0.9406 (2011 low) to 1.4689 (2015 high) at 1.2048
