Daily Pivots: (S1) 1.2496; (P) 1.2528; (R1) 1.2578; More…
USD/CAD recovered after hitting 1.2475 and intraday bias is turned neutral first. On the upside, break of 1.2646 will resume the rebound from 1.2363. But overall outlook will stay bearish as long as 1.2742 resistance holds, and eventual downside breakout is expected. On the downside, break of 1.2475 minor support will bring retest of 1.2363 low first.
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 strong rebound.
