Daily Pivots: (S1) 1.2994; (P) 1.3086; (R1) 1.3144; More….
USD/CAD’s break of 1.3081 resistance argues that consolidation from 1.2994 has possibly completed already. Intraday bias is turned back to the downside for 1.2994 low first. Decisive break there will resume larger down trend from 1.4667. On the upside, however, break of 1.3178 resistance 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.
