Daily Pivots: (S1) 1.3172; (P) 1.3219; (R1) 1.3244; More….
USD/CAD’s fall accelerates to as low as 1.3180 so far and intraday bias remains on the downside. Corrective rebound from 1.2994 should have completed and deeper decline would be seen to retest this low. Firm break there will resume larger down trend from 1.4667. On the upside, though, break of 1.3340 minor resistance will flip bias back to the upside to extend the corrective rebound from 1.2994 with another up leg.
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, firm break of 1.3715 resistance will argue that this falling leg has completed and turn focus back to 1.4667/89 resistance zone.
