Daily Pivots: (S1) 1.2633; (P) 1.2668; (R1) 1.2726; More….
A temporary low was formed at 1.2608 in USD/CAD, just ahead of 1.588 low. Intraday bias is turned neutral first. Further fall is in favor with 1.2762 minor resistance intact. Firm break of 1.2588 will resume larger down from 1.4667, to 61.8% projection of 1.3389 to 1.2588 from 1.2880 at 1.2385. On the upside, though, break of 1.2762 will extend the consolidation pattern from 1.2588 with another rise, towards 1.2880 resistance.
In the bigger picture, fall from 1.4667 is seen as the third leg of the corrective pattern from 1.4689 (2016 high). Further decline should be seen back to 1.2061 (2017 low). In any case, break of 1.3389 resistance is needed to indicate medium term bottoming. Otherwise, outlook will remain bearish in case of rebound.
