Daily Pivots: (S1) 1.2993; (P) 1.3037; (R1) 1.3079; More…
USD/CAD recovered after hitting 1.2993 and breached 1.3092 minor resistance. But there is no follow through buying so far. Intraday bias is turned neutral first. On the downside, below 1.2993 will resume the fall from 1.3385 to 100% projection of 1.3385 to 1.3063 from 1.3289 at 1.2967 and possibly below. But we’re still seeing the fall from 1.3385 as a correction. Hence, we’d expect strong support from channel line (now at 1.2907) to contain downside and bring rebound. On the upside, firm break of 1.3092 will turn bias to the upside for 1.3289 resistance.
In the bigger picture, as long as channel support (now at 1.2907) holds, we’re holding to the bullish view. That is, fall from 1.4689 (2015 high) has completed at 1.2061, ahead of 50% retracement of 0.9406 (2011 low) to 1.4689 (2015 high) at 1.2048. Further rally should be seen for 61.8% retracement of 1.4689 to 1.2061 at 1.3685 and above. However, sustained break of the channel support will argue that rise from 1.2061 has completed and will bring deeper fall to 1.2526 support to confirm.
