Daily Pivots: (S1) 1.3317; (P) 1.3368; (R1) 1.3409;
A temporary top is formed at 1.3148 with the current retreat. Intraday bias in USD/CAD is turned neutral for some consolidations. But further rise is expected as long as 1.3171 support holds. Above 1.3148 will resume the rebound from 1.2994 short term bottom to 38.2% retracement of 1.4667 to 1.2994 at 1.3633. However, break of 1.3171 will turn bias to the downside for retesting 1.2994 low.
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, though, break of 1.3715 resistance is needed to confirm completion of the fall. Otherwise, outlook will stay bearish.
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