Daily Pivots: (S1) 1.3114; (P) 1.3192; (R1) 1.3347; More…
USD/CAD’s rebound and break of 1.3189 resistance suggests short term bottoming at 1.3017 on bullish convergence condition in 4 hour MACD. More importantly, it should have invalidated the case of double top reversal. Instead, price actions from 1.3588 could just be a three wave consolidation pattern that completed at 1.3017 too. Intraday bias is back on the upside for 1.3598. Break there will extend the whole rise from 1.2460 to next fibonacci level at 1.3838. Meanwhile, break of 1.3017 will revive the case of near term reversal and target 1.2460.
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 still in progress and could target 61.8% retracement of 1.4689 to 1.2460 at 1.3838. As rise from 1.2460 is seen as a corrective move, we’d look for reversal signal above 1.3838. Meanwhile, break of 1.3017 will likely start the third leg to 1.2460 and below.
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