Daily Pivots: (S1) 1.3010; (P) 1.3058; (R1) 1.3097; More….
USD/CAD’s decline is still in progress and intraday bias stays on the downside for 100% projection of 1.4048 to 1.3315 from 1.3715 at 1.2982. Break will target 161.8% projection at 1.2529. On the upside, break of 1.3125 minor resistance will turn intraday bias neutral first. But break of 1.3239 resistance is needed to indicate short term bottoming. Otherwise, outlook will remain bearish in case of recovery.
In the bigger picture, fall from 1.4667 is seen as the third leg of the corrective pattern from 1.4689 (2016 high). Sustained break of 61.8% retracement of 1.2061 to 1.4667 at 1.3056 will target a test on 1.2061 (2017 low). But we’d expect loss of downside momentum as it approaches this key support. On the upside, though, break out 1.3715 resistance is needed to confirm completion of the fall. Otherwise, outlook will stay bearish.
