Daily Pivots: (S1) 1.2451; (P) 1.2488; (R1) 1.2550; More…
USD/CAD recovered after drawing support from 4 hour 55 EMA but stays below 1.2589 resistance. Intraday bias remains neutral first. As long as 1.2301 support holds, another rise is in favor. On the upside, break of 1.2589 will resume the rise from 1.2005 to 1.2653 structural resistance to confirm larger bullish reversal. However, on the downside, break of 1.2301 support will dampen the bullish case and turn bias back to the downside for 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.
