Daily Pivots: (S1) 1.2899; (P) 1.2949; (R1) 1.2984; More…
USD/CAD breached 1.2926 as fall from 1.3070 extends but it recovers quickly. Intraday bias is turned neutral first. On the downside, firm break of 1.2926 will turn bias to the downside for 1.2781 instead. That would also argue that fall from 1.3385 is still in progress for another low. On the upside, break of 1.3081 resistance will be the first sign of completion of whole choppy fall from 1.3385. In that case, near term outlook will be turned bullish for 1.3225 resistance for confirmation.
In the bigger picture, corrective rebound from 1.2061 could have completed at 1.3385 already. Deeper fall is mildly in favor to 61.8% retracement of 1.2061 to 1.3385 at 1.2567, which is close to 1.2526 support. 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 . On the upside, though, break of 1.3081 resistance will argue that the pull back from 1.3385 is completed and rise from 1.2061 is resuming for another high above 1.3385.
