Daily Pivots: (S1) 1.2714; (P) 1.2728; (R1) 1.2745; More….
USD/CAD’s break of 1.2688 low suggests down trend resumption. Intraday bias is back on the downside. Fall from 1.4677 should target 100% projection of 1.3172 to 1.2688 from 1.2957 at 1.2473. In any case, break of 1.2957 resistance is needed to indicate short term bottoming. Otherwise, outlook will stay bearish in case of recovery.
In the bigger picture, fall from 1.4667 is seen as the third leg of the corrective pattern from 1.4689 (2016 high). Further decline should be seen back to 1.2061 (2017 low). In any case, break of 1.3389 resistance is needed to indicate medium term bottoming. Otherwise, outlook will remain bearish in case of rebound.
