Daily Pivots: (S1) 1.2847; (P) 1.2872; (R1) 1.2907; More….
USD/CAD’s sharp decline suggests temporary topping at 1.2996. Intraday bias is turned neutral for consolidation. For now, further rise is expected as long as 1.2802 minor support holds. Above 1.2996 will target 1.3124 resistance next. Decisive break there will extend larger rebound to 100% projection of 1.2246 to 1.3124 from 1.2526 at 1.3404. However, break of 1.2802 will at least delay the bullish case, and turn bias back to the downside for 55 day EMA (now at 1.2779) and below.
In the bigger picture, current development suggests that rebound from 1.2061 has not completed yet. Focus is back on 38.2% retracement of 1.4689 to 1.2061 at 1.3065. Sustained trading above there will confirm medium term bullish reversal. That is, down trend from 1.4689 has completed at 1.2061 already. In that case, next target will be 61.8% retracement at 1.3685.
