Daily Pivots: (S1) 1.2199; (P) 1.2241; (R1) 1.2326; More…
USD/CAD’s strong break of 1.2201 resistance finally confirms short term bottoming at 1.2005. It’s also the first sign of near term bullish reversal, after drawing support from 1.2048/61 cluster level. Intraday bias will be turned back to the upside for 1.2363/2653 resistance zone. On the downside, break of 1.2155 minor support will turn intraday bias neutral again first.
In the bigger picture, fall from 1.4667 is seen as the third leg of the corrective pattern from 1.4689 (2016 high). We’d 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 1.2363 support turned 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.
