Daily Pivots: (S1) 1.3207; (P) 1.3272; (R1) 1.3311; More….
USD/CAD’s fall extends to as low as 1.3225 so far and intraday bias remains on the downside. Firm break of 1.3263 support confirms resumption of whole fall from 1.3534. At this point, such decline is still viewed as a correction. hence we’d expect strong support from 1.3184 cluster level to contain downside (61.8% retracement of 1.2968 to 1.3534 at 1.3184, 100% projection of 1.3534 to 1.3263 from 1.3455 at 1.3814 too). Break of 1.3309 minor resistance will indicate short term bottoming and turn bias back to the downside for 1.3455. However, sustained break of 1.3184 will dampen our view and could bring deeper fall back to 1.2968 key support level.
In the bigger picture, price actions from 1.4689 medium term top are seen as a correction pattern. The first leg has completed at 1.2460. The second leg from 1.2460 is likely still in progress and could target 61.8% retracement of 1.4689 to 1.2460 at 1.3838. We’d look for reversal signal there to start the third leg. However, break of 1.2968 will argue that the third leg has already started and should at least bring a retest of 1.2460 low. Meanwhile, sustained trading above 1.3838 would pave the way to retest 1.4689 high.
