Daily Pivots: (S1) 1.2662; (P) 1.2714; (R1) 1.2791; More….
Intraday bias in USD/CAD remains neutral first. Near term outlook stays bearish as long as 1.2834 resistance holds. On the downside, break of 1.2623 will resume the down trend from 1.4667 to 61.8% projection of 1.4667 to 1.2994 from 1.3389 at 1.2355. On the upside, however, break of 1.2834 should indicate short term bottoming and turn bias back to the upside for 1.2957 resistance.
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.
