Daily Pivots: (S1) 1.3022; (P) 1.3059; (R1) 1.3099; More….
Intraday bias in USD/CAD remains on the downside for retesting 1.2994 low. Decisive break there will resume larger down trend form 1.4667. Next near term target is 61.8% projection of 1.4667 to 1.2994 from 1.3389 at 1.2355. On the upside, above 1.3097 minor resistance will mix up the near term outlook and turn intraday bias neutral first.
In the bigger picture, fall from 1.4667 is seen as the third leg of the corrective pattern from 1.4689 (2016 high). Rejection by 55 week EMA is keeping outlook bearish. 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.
