Daily Pivots: (S1) 1.2977; (P) 1.3013; (R1) 1.3056; More…..
USD/CAD’s sharp fall from 1.3046 and strong break of 1.2967 minor support dampened our bullish view. Intraday bias is turned back to the downside for 1.2728 support. Break there will indicate completion of the rebound from 1.2526 at 1.3046. And in that case, deeper fall would be seen back to 1.2526 and below. Nonetheless, strong rebound 1.2728 will put focus back to 1.3046 resistance first.
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.
