Daily Pivots: (S1) 1.2395; (P) 1.2442; (R1) 1.2467; More…
USD/CAD drops to as low as 1.2322 so far. Break of 1.2354 indicates resumption of fall from 1.2919. Intraday bias is back on the downside for retesting 1.2061 low. On the upside, break of 1.290 minor resistance is needed to indicate short term bottoming. Otherwise, outlook will remain bearish in case of recovery.
In the bigger picture, rebound from 1.2061 is likely completed completed at 1.2919, rejected by 55 week EMA (now at 1.2850) and kept below 38.2% retracement of 1.4689 to 1.2061 at 1.3065. The development also suggests that long term fall from 1.4689 is not completed yet. Decisive break of 1.2061 low will target 61.8% retracement of 0.9406 to 1.4689 at 1.1424. This will now be the favored case as long as 1.2919 resistance holds.
