Daily Pivots: (S1) 1.2475; (P) 1.2532; (R1) 1.2588; More…
Intraday bias in USD/CAD stays on the upside at this point. Rebound from 1.2005 low is in progress for 1.2653 resistance. The break of medium term falling channel resistance is a sign of bullish trend reversal. Firm break of 1.2653 should confirm. However, downside, below 1.2421 minor support will turn intraday bias neutral first. But 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.
