Daily Pivots: (S1) 1.2559; (P) 1.2590; (R1) 1.2620; More….
With 1.2622 minor resistance intact, intraday bias in USD/CAD remains on the downside. Sustained trading below 61.8% retracement of 1.2246 to 1.3124 at 1.2581 will bring deeper fall to 1.2061/2246 support zone. On the upside, above 1.2622 will bring recovery. But upside should be limited below 1.2814 support turned resistance and bring another fall.
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. Decisive break there will resume larger down trend from 1.4689 (2016 high) to 61.8% retracement of 0.9406 to 1.4689 at 1.1424.
