Daily Pivots: (S1) 1.2263; (P) 1.2296; (R1) 1.2339; More…
Intraday bias in USD/CAD remains neutral for the moment, with focus on 4 hour 55 EMA (now at 1.2280). Sustained trading below there will indicate that rebound form 1.2005 has completed after failing medium term channel resistance. Intraday bias will be back on the downside for retesting 1.2005. On the upside, above 1.2485 will resume the rebound 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.
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.
