Daily Pivots: (S1) 1.2740; (P) 1.2767; (R1) 1.2806; More….
Intraday bias in USD/CAD remains neutral for consolidation above 1.2732 temporary low. Near term outlook stays bearish for deeper decline. A short term top is ate least formed at 1.3124 with head and shoulder top pattern (ls: 1.3000; h: 1.3124; rs: 1.2942). Below 1.2732 will target 61.8% retracement of 1.2246 to 1.3124 at 1.2581 next. However, break of 1.2942 will invalidate this bearish view and turn bias back to the upside for 1.3214 high.
In the bigger picture, current development turns favors to the case that rise from 1.2061 is a corrective three wave pattern. It could have completed at 1.3124 after hitting 38.2% retracement of 1.4689 to 1.2061 at 1.3065. Focus is now back on 1.2061 and 50% retracement of 0.9406 (2011 low) to 1.4689 (2015 high) at 1.2048.
