Daily Pivots: (S1) 1.3390; (P) 1.3448; (R1) 1.3496; More…
Intraday bias in USD/CAD remains on the downside for the moment. Rebound from 1.3080 could have completed at 1.3598 after failing to sustain above 1.3588 resistance. Deeper fall would be seen to retest 1.3080. Price actions from 1.2460 low are still viewed as a corrective move. Decisive break of 1.3080 will indicate that it’s completed and turn outlook bearish for retesting 1.2460 low. On the upside, sustained break of 1.3588, though, will target next fibonacci level at 1.3838.
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. The second leg is possibly finished at 1.3588 too after hitting 50% retracement of 1.4689 to 1.2460 at 1.3575. Break of 1.3005 would likely resume the fall from 1.4689 through 1.2460 to 50% retracement of 0.9406 to 1.4689 at 1.2048. We’d start to look for reversal signal below 1.2460 to complete the correction. In case of another rise, we’ll look for topping sign at 61.8% retracement of 1.4689 to 1.2460 at 1.3838.
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