Daily Pivots: (S1) 1.2723; (P) 1.2750; (R1) 1.2784; More….
USD/CAD’s recovery from 1.2412 resumed and reaches as high as 1.2777 so far. Intraday bias is mildly on the upside for further rise. Nonetheless, such rise is viewed as a corrective move. And based on current momentum, upside should be limited by 38.2% retracement of 1.3793 to 1.2412 at 1.2940 to bring fall resumption. On the downside, below 1.2652 minor support will argue that the recovery is completed and turn bias back to the downside for retesting 1.2412.
In the bigger picture, price actions from 1.4689 medium term top are seen as a correction pattern. Such corrective fall is still expected to extend to 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. Nonetheless, on the upside, 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.
