Daily Pivots: (S1) 1.2345; (P) 1.2420; (R1) 1.2537; More…
Breach of 1.2485 resistance suggests resumption of whole rebound from 1.2005. Intraday bias is now on the upside for 1.2653 key structural resistance next. Support from 55 day EMA is a sign of near term bullishness for USD/CAD. Hence, for now, break of 1.2301 support is needed to indicate short term topping. Otherwise, further rally will remain in favor in case of retreat.
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.
