Daily Pivots: (S1) 1.3053; (P) 1.3077; (R1) 1.3111; More…
USD/CAD’s break of 1.3122 resistance suggests that a short term bottom is formed at 1.3042, ahead of 1.3016 key support. Intraday bias is turned back to the upside for 55 day EMA (now at 1.3202). Sustained break there will bring further rise to 1.3382 resistance. For now, in case of another fall, downside should be contained above 1.3042 to bring rise resumption.
In the bigger picture, 38.2% retracement of 1.2061 to 1.3664 at 1.3052 remains intact. Medium term rise from 1.2061 low is in favor to resume sooner or later. Firm break of 61.8% retracement of 1.4689 (2016 high) to 1.2061 at 1.3685 will confirm and target 1.4689 high. However, sustained break of 1.3052 will confirm completion of up trend from 1.2061 (2017 low). Further fall should be seen to 61.8% retracement at 1.2673 next.
