Daily Pivots: (S1) 1.3051; (P) 1.3065; (R1) 1.3086; More….
Intraday bias in USD/CAD remains neutral as range trading continues. On the upside, firm break of 1.3104 resistance will confirm short term bottoming at 1.2951. Further rise should then be seen to 55 day EMA (now at 1.3126). Sustained trading above there will target 1.3327 resistance. On the downside, below 1.3029 minor support will turn bias to the downside for 1.2951 low. Break there will resume larger decline to 100% projection of 1.3564 to 1.3016 from 1.3327 at 1.2779 next.
In the bigger picture, rise from 1.2061 (2017 low) could have completed at 1.3664, after failing 61.8% retracement of 1.4689 (2016 high) to 1.2061 at 1.3685. However, structure of price actions from 1.3664 argues that it’s probably just a corrective move. Hence, while further fall is expected, downside should be contained by 61.8% retracement of 1.2061 to 1.364 at 1.2673. Nevertheless, sustained break of 1.2673 will put focus on 1.2061 low.
