Daily Pivots: (S1) 1.2271; (P) 1.2337; (R1) 1.2372; More…
Intraday bias in USD/CAD remains neutral as consolidation from 1.2485 is extending. On the upside, above 1.2485 will resume the rise from 1.2005 to 1.2653 resistance. Firm break there should confirm near term bullish reversal and target 38.2% retracement of 1.4667 to 1.2005 at 1.3022 next. However, on the downside, sustained break of 4 hour 55 EMA (now at 1.2278) will bring retest of 1.2005 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). It might have completed after hitting 1.2061 (2017 low) and 50% retracement of 0.9406 to 1.4689 at 1.2048. Sustained break of 38.2% retracement of 1.4667 to 1.2005 at 1.3022 will pave the way to 61.8% retracement at 1.3650. Overall, medium term outlook remains neutral at worst with 1.2048/61 support zone intact.
