Daily Pivots: (S1) 1.3172; (P) 1.3271; (R1) 1.3321; More….
USD/CAD’s sharp fall and break of 1.3225 support suggests that rebound from 1.3081 has completed at 1.3389, ahead rejection by 1.3418 resistance. Intraday bias is now mildly on the downside for 1.3081 support. Break will bring retest of 1.2994 low. On the upside, break of 1.3389 will likely resume the corrective pattern from 1.2994 with another rise through 1.3418 resistance.
In the bigger picture, fall from 1.4667 is seen as the third leg of the corrective pattern from 1.4689 (2016 high). Sustained break of 61.8% retracement of 1.2061 to 1.4667 at 1.3056 will target a test on 1.2061 (2017 low). But we’d expect loss of downside momentum as it approaches this key support. On the upside, firm break of 1.3715 resistance will argue that this falling leg has completed and turn focus back to 1.4667/89 resistance zone.
