Daily Pivots: (S1) 1.3193; (P) 1.3259; (R1) 1.3306; More….
USD/CAD drops further to as low as 1.3211 so far as the decline from 1.3793 extends. Intraday bias remains on the downside with focus on 1.3222 support, which is close to medium term channel support. As noted before, we’re holding on to the view that whole choppy rise from 1.2460 has completed at 1.3793. Decisive of 1.3222 will affirm our bearish view and target 1.2968 key support for confirmation. On the upside, above 1.3285 minor resistance will turn bias neutral and bring recovery. But upside should be limited by 1.3387/3537 resistance zone to bring another decline.
In the bigger picture, price actions from 1.4689 medium term top are seen as a correction pattern. The first leg has completed at 1.2460. Rise from 1.2460 is seen as the second leg and could have completed at 1.3793, ahead of 61.8% retracement of 1.4689 to 1.2460 at 1.3838. Break of 1.3222 should indicate the start of the third leg while further break of 1.2968 should confirm. In that case, USD/CAD should decline through 1.2460 support to 50% retracement of 0.9406 to 1.4869 at 1.2048.
