Daily Pivots: (S1) 1.2559; (P) 1.2608; (R1) 1.2695; More…
USD/CAD’s break of 1.2706 resistance suggests that pull back form 1.2947 has completed. More importantly, with 1.2421 support well defended, rise form 1.2005 is still in progress. Intraday bias is turned back to the upside for retesting 1.2947 first. Break there will target 1.3022 fibonacci level next. On the downside, however, below 1.2492 will resume the fall from 1.2947 to 1.2421 key near term structural support instead.
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.
