Daily Pivots: (S1) 1.2571; (P) 1.2607; (R1) 1.2627; More…
Intraday bias in USD/CAD is turned neutral with current recovery. On the upside, break of 1.2711 minor resistance will revive near term bullishness, and turn bias back to the upside for retesting 1.2947 high instead. On the downside, below 1.2577 will bring deeper fall to 1.2421 support. Firm break there will suggest rejection by 1.3022 fibonacci level. Rise from 1.2005 could have completed in this case and deeper fall would be seen to retest this low.
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.
