Daily Pivots: (S1) 1.3138; (P) 1.3172; (R1) 1.3189; More….
A temporary top is formed at 1.3205 and intraday bias in USD/CAD is turned neutral first. Downside of consolidation should be contained by 1.3104 resistance turned support to bring another rally. As noted before, we’re favoring the case that corrective pattern from 1.3664 has completed as a triangle at 1.2951. Above 1.3205 will target 1.3327 resistance to confirm this bullish view. However, break of 1.3104 will turn focus back to 1.2951 low instead.
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 cannot be ruled out, downside should be contained by 50% retracement of 1.2061 to 1.3664 at 1.2863.
