Daily Pivots: (S1) 1.3103; (P) 1.3127; (R1) 1.3175; More…
Intraday bias in USD/CAD remains neutral for the moment. We’re holding on to the view that consolidation from 1.3588 has completed at 1.3017. Break of 1.3598 will extend the whole choppy rise from 1.2460 to next fibonacci level at 1.3838 and possibly above. Meanwhile, sustained break of 1.3017 will invalidate our view and indicate that rise from 1.2460 has completed and turn outlook bearish for 1.2460.
In the bigger picture, price actions from 1.4689 medium term top are seen as a correction pattern. The first leg has completed at 1.2460. The second leg is still in progress and could target 61.8% retracement of 1.4689 to 1.2460 at 1.3838. As rise from 1.2460 is seen as a corrective move, we’d look for reversal signal above 1.3838. Meanwhile, break of 1.3017 will likely start the third leg to 1.2460 and below.
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