Daily Pivots: (S1) 1.2760; (P) 1.2794; (R1) 1.2843; More….
USD/CAD rebounds strongly in early US session. But it’s staying in range of 1.2728/2996 and intraday bias remains neutral. For now, we’re still favoring the bullish case that rise from 1.2061 is still in progress. Above 1.2996 resistance will affirm this view and target 1.3124 and above. However, break of 1.2728 will now dampen our bullish view and turn focus back to 1.2526 support instead.
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. However, break of 1.2526 support will dampen this bullish view again. And, focus will be back on 1.2061 key support level, which is close to 50% retracement of 0.9406 (2011 low) to 1.4689 (2015 high) at 1.2048
