Daily Pivots: (S1) 1.2927; (P) 1.2970; (R1) 1.3001; More…
Even though USD/CAD’s rebound from 1.2781 was strong, it’s limited well below 1.3081 resistance. Such rebound is still seen as a correction and larger fall from 1.3385 is in progress. On the downside, below 1.2886 minor support will turn bias to the downside for 1.2781 first. Break of 1.2781 will extend whole decline from 1.3385 to next fibonacci level at 1.2567, which is close to 1.2526 support. However, break of 1.3081 will turn outlook bullish for 1.3225 resistance.
In the bigger picture, corrective rebound from 1.2061 could have completed at 1.3385 already. Deeper fall is mildly in favor to 61.8% retracement of 1.2061 to 1.3385 at 1.2567, which is close to 1.2526 support. For now, we’re not seeing fall from 1.3385 as resuming larger down trend from 1.4689 (2015 high) yet. Thus, we’ll look for bottoming signal again below 1.2567 . On the upside, though, break of 1.3081 resistance will argue that the pull back from 1.3385 is completed and rise from 1.2061 is resuming for another high above 1.3385.
