Daily Pivots: (S1) 1.2662; (P) 1.2692; (R1) 1.2724; More….
USD/CAD’s rebound from 1.2412 short term bottom is still in progress. Intraday bias remains on the upside for 38.2% retracement of 1.3793 to 1.2412 at 1.2940. Considering the the pair is losing upside momentum, we’d expect upside to be limited by 1.2940 to complete the correction. On the downside, below 1.2552 minor support will turn bias back to the downside for retesting 1.2412 low first.
In the bigger picture, price actions from 1.4689 medium term top are seen as a correction pattern. A short term bottom is formed at 1.2412 after hitting 61.8% projection of 1.4689 to 1.2460 from 1.3793 at 1.2415. But there is no sign of completion of the correction yet. Break of 1.2412 will target 50% retracement of 0.9406 to 1.4869 at 1.2048. At this point, we’d look for strong support from there to contain downside and bring rebound. Meanwhile, sustained break of 1.2968, 38.2% retracement of 1.3793 to 1.2412 at 1.2940 will be the first sign of completion of the correction and will turn focus back to 1.3793 key resistance.
