Daily Pivots: (S1) 1.2070; (P) 1.2155; (R1) 1.2202; More….
Intraday bias in USD/CAD remains on the downside as momentum remains strong. Firm break of long term fibonacci level at 1.2048 will carry larger bearish implication and target 61.8% projection of 1.3793 to 1.2412 from 1.2777 at 1.1924 next. On the upside, above 1.2245 minor resistance will turn intraday bias neutral first. But outlook will remain bearish as long as 1.2439 support turned resistance holds.
In the bigger picture, price actions from 1.4689 medium term top are seen as a correction pattern. Such corrective fall is expected to extend to 50% retracement of 0.9406 to 1.4869 at 1.2048. At this point, we’d look for strong support from there to contain downside and bring rebound. Break of 1.2777 resistance will indicate reversal and turn outlook bullish for 1.3793 key resistance. However, sustained break of 1.2048 will dampen this view and carry larger bearish implications and bring deeper decline to 61.8% retracement at 1.1424 and below.