Daily Pivots: (S1) 1.2040; (P) 1.2089; (R1) 1.2116; More…
USD/CAD’s decline resumes today by breaking 1.2044 temporary low and intraday bias is back on the downside. Sustained break of 1.2061 support will carry larger bearish implications. Next target will be 161.8% projection of 1.2880 to 1.2363 from 1.2653 at 1.1816 first. Outlook will stay bearish as long as 1.2201 resistance holds, in case of recovery.
In the bigger picture, fall from 1.4667 is seen as the third leg of the corrective pattern from 1.4689 (2016 high). We’re look for strong support from 1.2061 (2017 low) and 50% retracement of 0.9406 to 1.4689 at 1.2048 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. Also, sustained break of 1.2061 will pave the way to 61.8% retracement of 0.9406 to 1.4689 at 1.1424.
