Daily Pivots: (S1) 1.2409; (P) 1.2470; (R1) 1.2508; More…
USD/CAD’s break of 1.2485 resistance turned support argues that rise from 1.2005 might have completed at 1.2805 already. Intraday is now on the downside for next cluster support at 1.2301 (61.8% retracement of 1.2005 to 1.2805 at 1.2311). Also, for now, risk will stay mildly on the downside as long as 1.2605 resistance holds, in case of recovery.
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.
