Daily Pivots: (S1) 1.2775; (P) 1.2798; (R1) 1.2841; More….
Focus is back on 1.2819 minor resistance. Break will indicate that pull back from 1.2916 is completed. Intraday bias will be turned back to the upside. Further break of 1.2916 will resume whole rally from 1.2061 to 38.2% retracement of 1.4689 to 1.2061 at 1.3065. In case of another fall, we’d expect downside to be contained by 1.2598 resistance turned support and bring rebound.
In the bigger picture, USD/CAD should have defended 50% retracement of 0.9406 (2011 low) to 1.4689 (2016 high) at 1.2048. And with 1.2048 intact, we’d favor the case that fall from 1.4689 is a correction. Rise from 1.2061 medium term bottom should now target 38.2% retracement of 1.4689 to 1.2061 at 1.3065. Firm break there will target 1.3793 key resistance next (61.8% retracement at 1.3685). We’ll now hold on to this bullish view as long as 1.2450 support holds.
