Daily Pivots: (S1) 1.2199; (P) 1.2241; (R1) 1.2326; More…
USD/CAD rises to as high as 1.2377 so far and intraday bias stays on the upside for 1.2653 resistance. Firm break there should confirm near term bullish reversal after drawing support from 1.2048/61 cluster. Next target is 38.2% retracement of 1.4667 to 1.2005 at 1.3022. On the downside, below 1.2261 minor support will turn intraday bias neutral first and bring consolidations, before staging another rally.
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.
