Daily Pivots: (S1) 1.2828; (P) 1.2871; (R1) 1.2924; More….
As noted before, considering loss of upside momentum in 4 hour MACD and proximity to 1.2919 key resistance, intraday bias in USD/CAD stays neutral first. On the downside, below 1.2757 resistance turned support will indicate rejection from 1.2919 resistance. Intraday bias will be turned back to the downside for 1.2614 support first. Nonetheless, firm break of 1.2919 will resume the rise from 1.2061 low and target 1.3065 fibonacci level
In the bigger picture, current development is reviving the case of medium term reversal after drawing support from 50% retracement of 0.9406 (2011 low) to 1.4689 (2015 high) at 1.2048. Break of 1.2919 will add more credence to this bullish case and target 38.2% retracement of 1.4689 to 1.2061 at 1.3065 first. Break will target 61.8% retracement at 1.3685. However, break of 1.2450 near term support will turn focus back to 1.2061 low instead.
