Daily Pivots: (S1) 1.2860; (P) 1.2954; (R1) 1.3003; More…
USD/CAD drops sharply to as low as 1.2812 so far today and fall from 1.3385 resumes. With 1.2879 key fibonacci level firmly taken out, such decline should now target next fibonacci level at 1.2567, which is close to 1.2526 support. On the upside, break of 1.3081 resistance is needed to indicate short term bottoming. Otherwise, outlook will remain bearish even in case of recovery.
In the bigger picture, the firm break of 38.2% retracement of 1.2061 to 1.3385 at 1.2879 key fibonacci level argues that whole choppy rebound from 1.2061 has completed at 1.3385 already. Deeper fall would be seen back to 61.8% retracement at 1.2567, which is close to 1.2526 support and possibly below. For now, we’re not seeing fall from 1.3385 as resuming larger down trend from 1.4689 (2015 high) yet. Thus, we’ll look for bottoming signal again below 1.2567 .
