Daily Pivots: (S1) 1.2391; (P) 1.2467; (R1) 1.2521; More….
USD/CAD’s decline is still in progress and took out 1.2460 key support level. We’d stay cautious on rebound on bullish convergence condition in 4 hour MACD, as well as deep oversold condition in daily RSI. But for the moment, further fall is expected as long as 1.2543 minor resistance holds. Sustained trading below 1.2460 will target next key fibonacci level at 1.2048. On the upside, break of 1.2543 will indicate short term bottoming and bring rebound.
In the bigger picture, price actions from 1.4689 medium term top are seen as a correction pattern. Fall from 1.3793 is seen as the third leg and should target 50% retracement of 0.9406 to 1.4869 at 1.2048. At this point, we’d look for strong support from there to contain downside and bring rebound. However, firm break there will target 100% projection of 1.4689 to 1.2460 from 1.3793 at 1.1564.
