Daily Pivots: (S1) 1.3179; (P) 1.3222; (R1) 1.3251; More….
USD/CAD’s break of 1.3191 temporary low suggests resumption of fall from 1.4667. Intraday bias in back on the downside for long term fibonacci level at 1.3056. On the upside, break of 1.3271 resistance is needed to indicate short term bottoming. Otherwise, outlook will remain bearish in case of recovery.
In the bigger picture, the rise from 1.2061 (2017 low) could have completed at 1.4667 after failing 1.4689 (2016 high). Fall from 1.4667 could be the third leg of the corrective pattern from 1.4689. Deeper fall is expected to 61.8% retracement of 1.2061 to 1.4667 at 1.3056 and possibly below. This will now remain the favored case as long as 1.3715 resistance holds. However, sustained break of 1.3715 will turn focus back to 1.4689 key resistance.
