Daily Pivots: (S1) 1.2626; (P) 1.2663; (R1) 1.2703; More….

Range trading continues in USD/CAD and intraday bias remains neutral first. Overall, outlook will stay bearish as long as 1.2880 resistance holds. Below 1.2574 minor support will bring retest of 1.2466 low first. Break there will resume larger down trend from 1.4667. However, sustained break of 1.2880 will argue that fall from 1.3389 has completed and bring stronger rise to 1.2994 support turned 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 1.2994 support turned resistance resistance is needed to indicate medium term bottoming. Otherwise, outlook will remain bearish in case of strong rebound.

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