Daily Pivots: (S1) 1.3172; (P) 1.3219; (R1) 1.3244; More….

USD/CAD’s decline continues today and reaches as low as 1.3132 so far. Intraday bias remains on the downside for 1.2994 low first. Firm break there will confirm resumption of whole down trend from 1.4667. On the upside, break of 1.3242 support turned resistance is needed to indicate completion of the fall. Otherwise, outlook will remain mildly bearish in case of recovery.

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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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