Daily Pivots: (S1) 1.3017; (P) 1.3060; (R1) 1.3093; More…
Overall outlook in USD/CAD is unchanged. Corrective rise from 1.2460 should have completed at 1.3598 already, after hitting 50% retracement of 1.4689 to 1.3838. Fall from 1.3598 is seen as the third leg of the corrective fall from 1.4689. Deeper decline is expected as long as 1.3168 minor resistance holds, to retest 1.2460 low. On the upside, though, break of 1.3168 minor resistance will mix up the outlook again and turn intraday bias neutral first.
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 could be completed at 1.3598 and fall from there is tentatively seen as the third leg. Break of 1.2460 will target 50% retracement of 0.9460 to 1.4689 at 1.2075 before completing the correction. In case of another rise, we’d look for reversal signal above 61.8% retracement of 1.4689 to 1.2460 at 1.3838.
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