Daily Pivots: (S1) 1.1.2579; (P) 1.2600; (R1) 1.2638; More…
USD/CAD rises to as high as 1.2706 so far today, as rise from 1.2005 re-accelerates. The break of 1.2653 resistance now argues that whole fall from 1.4667 has completed. Intraday stays on the upside for 1.3022 medium term fibonacci level next. On the downside, break of 1.2589 support will turn intraday bias neutral first. But outlook will now stay bullish as long as 1.2423 support holds, 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 should 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 and above. Overall, medium term outlook remains neutral at worst with 1.2048/61 support zone intact.
