Daily Pivots: (S1) 1.2266; (P) 1.2294; (R1) 1.2323; More

Intraday bias in USD/CAD remains neutral for consolidation above 1.2265 temporary low. Upside of recovery should be limited well below 1.2653 resistance to bring down trend resumption. Break of 1.2265 will target 100% projection of 1.2880 to 1.2363 from 1.2653 at 1.2136 next.

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). We’d look for strong support from there to bring rebound. Nevertheless, sustained break of 1.2653 resistance is needed to be the first sign of medium term bottoming. Otherwise, outlook will remain bearish in case of strong rebound.

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