Daily Pivots: (S1) 1.3022; (P) 1.3059; (R1) 1.3099; More….
USD/CAD’s decline re-accelerates to as low as 1.2928 so far today. The strong break of 1.2994 low confirms down trend resumption. Intraday bias stays on the downside for 61.8% projection of 1.4667 to 1.2994 from 1.3389 at 1.2355. On the upside, above 1.3030 minor resistance will turn bias neutral and bring consolidations first, before staging another fall.
In the bigger picture, fall from 1.4667 is seen as the third leg of the corrective pattern from 1.4689 (2016 high). Rejection by 55 week EMA is keeping outlook bearish. 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 1.3389 resistance is needed to indicate medium term bottoming. Otherwise, outlook will remain bearish in case of rebound.
