Daily Pivots: (S1) 1.2529; (P) 1.2556; (R1) 1.2595; More….

USD/CAD recovered after dipping to 1.2501 and intraday bias is turned neutral first. On the downside, below 1.2501 will bring retest of 1.2363 low. Firm break there will resume larger down trend from 1.4667. Next target is 100% projection of 1.3389 to 1.2588 from 1.2880 at 1.2079. On the upside, break of 1.2646 will resume the rebound from 1.2363. But overall outlook will stay bearish as long as 1.2742 resistance holds.

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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