Daily Pivots: (S1) 1.2553; (P) 1.2585; (R1) 1.2619; More….
Intraday bias in USD/CAD is turned neutral with 4 hour MACD crossed below signal line. Consolidation from 1.2412 short term bottom might extend. But in case of another rise, upside should be limited by 38.2% retracement of 1.3346 to 1.2412 at 1.2769 to bring fall resumption. On the downside, break of 1.2412 will extend recent fall from 1.3793 to next key fibonacci level at 1.2048. However, sustained break of 1.2769 will bring stronger rebound back to 55 day EMA (now at 1.2927) before resuming the larger fall.
In the bigger picture, price actions from 1.4689 medium term top are seen as a correction pattern. Fall from 1.3793 is seen as the third leg and should target 50% retracement of 0.9406 to 1.4869 at 1.2048. At this point, we’d look for strong support from there to contain downside and bring rebound. However, firm break there will target 100% projection of 1.4689 to 1.2460 from 1.3793 at 1.1564.
