Daily Pivots: (S1) 1.2238; (P) 1.2285; (R1) 1.2312; More…
Intraday bias in USD/CAD remains on the downside for the moment. Current decline from 1.2919 would extend to retest 1.2061 low. Decisive break there will resume larger down trend. However, considering bullish convergence condition in 4 hour MACD, break of 1.2390 minor resistance should indicate short term bottoming. In this case, intraday bias will be turned back to the upside for rebound to 55 day EMA (now at 1.2531).
In the bigger picture, rebound from 1.2061 is likely completed completed at 1.2919, rejected by 55 week EMA and kept below 38.2% retracement of 1.4689 to 1.2061 at 1.3065. The development also suggests that long term fall from 1.4689 is not completed yet. Decisive break of 1.2061 low will target 61.8% retracement of 0.9406 to 1.4689 at 1.1424. This will now be the favored case as long as 1.2919 resistance holds.
. ){kind=link}