Daily Pivots: (S1) 1.2882; (P) 1.2908; (R1) 1.2931; More…
USD/CAD dropped to as low as 1.2883 so far and breached 1.2886 key support. The decline is deeper than we expected. Intraday bias stays on the downside. Break of 38.2% retracement of 1.2061 to 1.3385 at 1.2879 will target 50% retracement at 1.2723 next. On the upside, however, break of 1.3063 minor resistance will indicate complete of the fall from 1.3225. Intraday bias should then be turned back to the upside for this resistance again.
In the bigger picture, strong rebound ahead of 38.2% retracement of 1.2061 to 1.3385 at 1.2879 key fibonacci level retains medium term bullishness. That is, rise from 2017 low at 1.2061 is still in progress. Break of 1.3384 should target 61.8% retracement of 1.4689 (2015 high) to 1.2061 (2017 low) at 1.3685. However, sustained break of 1.2879 will dampen his bullish view and turn focus back to 61.8% retracement at 1.2567, which is close to 1.2526 support.
