Daily Pivots: (S1) 1.2702; (P) 1.2739; (R1) 1.2811; More….
USD/CAD’s rebound from 1.2246 resumed after brief consolidation. Intraday bias is back on the upside for 1.2919 key resistance. We’d be cautious on strong resistance from there to limit upside. But a firm there will carry larger bullish implication. On the downside, below 1.2614 minor support will turn bias to the downside for 1.2450 and below.
In the bigger picture, the rebound from 1.2246 is mixing up the medium term outlook. Nonetheless, USD/CAD is staying below falling 55 week EMA (now at 1.2771), hence, the bearish case is in favor. That is, fall from 1.4689 is not completed yet. Sustained break of 1.2061 key support will carry larger bearish implication and target 61.8% retracement of 0.9406 to 1.4689 at 1.1424. However, firm break of 1.2919 will revive the case of medium term reversal and turn outlook bullish.
