Daily Pivots: (S1) 1.3473; (P) 1.3552; (R1) 1.3706; More….
USD/CAD’s break of 1.3572 resistance indicates short term bottoming at 1.3315. Intraday bias is flipped back to the upside for 38.2% retracement of 1.4667 to 1.3315 at 1.3831 first. Firm break there will target 61.8% retracement at 1.4151. On the downside, break of 1.3315 is now needed to confirm resumption of fall from 1.4667. Otherwise, risk will stay mildly on the upside in case of retreat.
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.
