Daily Pivots: (S1) 1.3346; (P) 1.3392; (R1) 1.3426; More….
A temporary low should be formed at 1.3356 in USD/CAD with today’s recovery. Intraday bias is turned neutral first. Another fall will remain in favor as long as 1.3572 minor resistance holds. On the downside, break of 1.3356 will extend the decline from 1.4667 to 100% projection of 1.4667 to 1.3855 from 1.4048 at 1.3236 next. However, firm break of 1.3572 will indicate short term bottoming. Stronger rebound would then be seen back to 1.3866 support turned resistance.
In the bigger picture, the strong break of 1.3664 resistance turned support, as well as the 55 week EMA (now at 1.3495), suggests that whole rise from 1.2061 (2017 low) has completed at 1.4667 (after failing 1.4689 (2016 high). Fall from 1.4667 could be the third leg of the corrective pattern from 1.4689. Deeper fall is expected to 61.8% retracement at 1.3056 and possibly below. This will now remain the favored case as long as 1.3855 support turned resistance holds.
