Daily Pivots: (S1) 1.2784; (P) 1.2833; (R1) 1.2878; More….

Intraday bias in USD/CAD is turned neutral with current steep retreat. Though, further rise is still expected as long as 1.2684 minor support holds. Break of 1.2880 will extend the rebound from 1.2588 short term bottom to 1.2957/94 resistance zone next. However, break of 1.2684 minor support will argue that the rebound has completed and bring retest of 1.2588 low.

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 1.3389 resistance is needed to indicate medium term bottoming. Otherwise, outlook will remain bearish in case of rebound.

Source link