Daily Pivots: (S1) 1.2695; (P) 1.2737; (R1) 1.2786; More….
USD/CAD’s rebound from 1.2588 extends higher today but stays below 1.2798 resistance. Intraday bias remains neutral first. On the upside, decisive break of 1.2798 should confirm short term bottoming, on bullish convergence condition in 4 hour MACD. Intraday bias will be turned back to the upside for 1.2957 resistance and possibly above. On the downside, break of 1.2588 will resume the down trend from 1.4677 to 61.8% projection of 1.4667 to 1.2994 from 1.3389 at 1.2355.
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.