Daily Pivots: (S1) 1.2887; (P) 1.2924; (R1) 1.2947; More…
USD/CAD loses some downside momentum ahead of 1.2879 fibonacci level. But with 1.2981 minor resistance intact, intraday bias stays on the downside for further decline. Sustained break of 1.2879 fibonacci level will add to the case of medium term reversal and target next fibonacci level at 1.2567. On the upside, above 1.2981 will bring stronger recovery. But overall near term outlook will stay cautiously bearish as long as 1.3173 resistance holds.
In the bigger picture, the break of channel support (now at 1.2988), argues that rise from 1.2246, as well as that from 1.2061, has completed at 1.3385. Focus is back on 38.2% retracement of 1.2061 to 1.3385 at 1.2879. Decisive break there will affirm the case of medium term reversal and target 61.8% retracement at 1.2567 and below. That will also put key long term support at 50% retracement of 0.9406 (2011 low) to 1.4689 (2015 high) at 1.2048 into focus. On the upside, break of 1.3173 resistance will revive the bullish case and target 61.8% retracement of 1.4689 to 1.2061 at 1.3685 and above.
