Daily Pivots: (S1) 1.2522; (P) 1.2572; (R1) 1.2666; More…
Intraday bias in USD/CAD is turned neutral with the current rebound, and focus is back on 1.2646 resistance. Sustained break there would also have 55 day EMA firmly taken out. That would indicate that USD/CAD is in a larger scale rebound. Intraday bias will be back on the upside for 100% projection of 1.2363 to 1.2646 from 1.2470 at 1.2753, and then 161.8% projection at 1.2928. Meanwhile, break of 1.2470 support will bring retest of 1.2363 low instead.
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.
