Daily Pivots: (S1) 1.2570; (P) 1.2642; (R1) 1.2689; More….
USD/CAD’s breach of 1.2588 support argues that down trend from 1.4667 is resuming. Intraday bias stays on the downside. Next target is 61.8% projection of 1.3389 to 1.2588 from 1.2880 at 1.2385. On the upside, though, break of 1.2745 resistance will extend the consolidation pattern from 1.2588 with another rise, towards 1.2880 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 1.2994 support turned resistance resistance is needed to indicate medium term bottoming. Otherwise, outlook will remain bearish in case of rebound.
