Daily Pivots: (S1) 1.2527; (P) 1.2570; (R1) 1.2639; More…
USD/CAD’s rise from 1.2005 resumes by taking out 1.2589 today. Intraday bias is back on the upside for 1.2653 structure resistance. Decisive break there would confirm larger bullish reversal and target 1.3022 fibonacci level next. On the downside, break of 1.2423 support is needed to indicate short term topping. Otherwise, outlook will stay mildly bullish 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.
