Daily Pivots: (S1) 1.2239; (P) 1.2277; (R1) 1.2301; More…
USD/CAD’s down trends resumed by breaking 1.2265 temporary low and intraday bias is back on the downside. Next target is 100% projection of 1.2880 to 1.2363 from 1.2653 at 1.2136. On the upside, however, break of 1.2350 minor resistance should now indicate short term bottoming. Intraday bias would then be turned back to the upside for rebound to 55 day EMA (now at 1.2524).
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). We’d look for strong support from there to bring rebound. Nevertheless, sustained break of 1.2653 resistance is needed to be the first sign of medium term bottoming. Otherwise, outlook will remain bearish in case of strong rebound.
