Daily Pivots: (S1) 1.3149; (P) 1.3180; (R1) 1.3218; More….
USD/CAD’s strong break of 1.3259 resistance suggests that choppy fall from 1.3418 has completed at 1.3081. More importantly, corrective rebound from 1.2994 is still in progress, and starting the third leg. Intraday bias is back on the upside for retesting 1.3418 resistance first. Break will confirm this case and target 100% projection of 1.2994 to 1.3418 from 1.3081 at 1.3505. On the downside, break of 1.3179 minor support will mix up the near term outlook again, and turn intraday bias neutral first.
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.
