Daily Pivots: (S1) 1.2898; (P) 1.2945; (R1) 1.3020; More…..
At this point, USD/CAD is staying below 1.2996 resistance. Thus, intraday bias remains neutral first. Overall, we’re holding on to the bullish view that rises from 1.2526, 1.2246, 1.2061 are not completed yet. Break of 1.2996 should confirm our view. In that case, intraday bias will be turned back to the upside for 1.3124 high next. Nonetheless, break of 1.2728 will dampen this bullish view and bring deeper fall back to 1.2526 and possibly below.
In the bigger picture, we’re favoring the case that 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.
