Daily Pivots: (S1) 1.2568; (P) 1.2593; (R1) 1.2634; More….
Intraday bias in USD/CAD remains neutral for consolidation above 1.2544 temporary low. Stronger recovery could be seen to 4 hour 55 EMA (now at 1.2684). But upside should be limited well below 1.2814 support turn resistance to bring decline resumption. On the downside, break of 1.2544 will target 1.2061/2246 support zone.
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.
