Daily Pivots: (S1) 1.3228; (P) 1.3285; (R1) 1.3313; More….

USD/CAD’s breach of 1.3242 suggests resumption of fall from 1.3418. Also, corrective rebound from 1.2994 might have completed. Intraday bias is back on the downside for retesting 1.2994 low. On the upside, though, break of 1.3340 will likely resume the rebound form 1.2994 through 1.3418, to 38.2% retracement of 1.4667 to 1.2994 at 1.3633.

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In the bigger picture, fall from 1.4667 is seen as the third leg of the corrective pattern from 1.4689 (2016 high). Sustained break of 61.8% retracement of 1.2061 to 1.4667 at 1.3056 will target a test on 1.2061 (2017 low). But we’d expect loss of downside momentum as it approaches this key support. On the upside, firm break of 1.3715 resistance will argue that this falling leg has completed and turn focus back to 1.4667/89 resistance zone.

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