Daily Pivots: (S1) 1.2531; (P) 1.2557; (R1) 1.2603; More…
USD/CAD’s rebound from 1.2421 resumed today but stays below 1.2605 resistance. Intraday bias remains neutral first. On the upside, firm break of 1.2605 will argue that pull back from 1.2805 has completed. Intraday bias will turn back to the upside for retesting 1.2805 high first. On the downside, below 1.2488 minor support should turn bias to the downside, to resume the fall from 1.2805 through 1.2421 support, to 1.2301 cluster support (61.8% retracement of 1.2005 to 1.2805 at 1.2311).
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.
