Daily Pivots: (S1) 1.3089; (P) 1.3146; (R1) 1.3188; More….
USD/CAD’s break of 1.3099 suggests resumption of fall from 1.3418. Intraday bias is back on the downside for retesting 1.2994 low. Decisive break there will resume the larger fall from 1.4667. On the upside, though, break of 1.3259 resistance will extend the consolidation pattern from 1.2994 with another rising leg. Intraday bias will be turned back to the upside for 1.3418 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, firm break of 1.3715 resistance will argue that this falling leg has completed and turn focus back to 1.4667/89 resistance zone.
