Daily Pivots: (S1) 1.3013; (P) 1.3050; (R1) 1.3106; More….
A temporary low is formed at 1.2994 ahead of 100% projection of 1.4048 to 1.3315 from 1.3715 at 1.2982. Intraday bias in USD/CAD is turned neutral first. Outlook will remain bearish as long as 1.3239 resistance holds. Break of 1.2982 will target 161.8% projection at 1.2529. However, firm break of 1.3239 will confirm short term bottoming, and turn bias to the upside for stronger rebound.
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.
