Daily Pivots: (S1) 1.3109; (P) 1.3184; (R1) 1.3223; More….
Intraday bias in USD/CAD is turned neutral as it retreated deeply after hitting 1.3259. But further rise remains in favor with 1.3086 minor support holds. Above 1.3259 will extend the rebound from 1.2994 short term bottom to 55 day EMA (now at 1.3319), and then 38.2% retracement of 1.4667 to 1.2994 at 1.3633. On the downside, though, below 1.3086 minor support will bring retest of 1.2994 instead.
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.
