Daily Pivots: (S1) 1.3328; (P) 1.3364; (R1) 1.3416; More….
Intraday bias in USD/CAD remains on the upside for the moment. The break of 1.3455 resistance confirmed that consolidation from 1.3534 has completed with three waves down to 1.3222. And the rises from 1.1968, and that from 1.2460 are possibly resuming. Further rally would be seen to retest 1.3598 high first. Decisive break there will pave the way to next medium term fibonacci level at 1.3838. On the downside, below 1.3399 minor support will turn bias neutral and bring consolidation before staging another rally.
In the bigger picture, price actions from 1.4689 medium term top are seen as a correction pattern. The first leg has completed at 1.2460. The second leg from 1.2460 is likely still in progress and could target 61.8% retracement of 1.4689 to 1.2460 at 1.3838. We’d look for reversal signal there to start the third leg. However, break of 1.2968 will argue that the third leg has already started and should at least bring a retest of 1.2460 low. Meanwhile, sustained trading above 1.3838 would pave the way to retest 1.4689 high.
