Daily Pivots: (S1) 1.2711; (P) 1.2738; (R1) 1.2759; More….
USD/CAD’s break of 1.2623 temporary low suggests down resumption. Intraday bias is back on the downside. Current down trend form 1.4667 should target 61.8% projection of 1.4667 to 1.2994 from 1.3389 at 1.2355. Near term outlook will remain bearish as long as 1.2798 resistance holds, even 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.
