Daily Pivots: (S1) 1.2812; (P) 1.2857; (R1) 1.2941; More…
USD/CAD’s breach of 1.2935 suggests resumption of 1.2286. Intraday bias is back on the upside for 1.2947 resistance, and then 1.3022 key medium term fibonacci level. Sustained break of 1.3022 will carry larger bullish implications. On the downside, break of 1.2762 support is needed to indicate short term topping. Otherwise, outlook will stay bullish in case of retreat.
In the bigger picture, focus will be on 38.2% retracement of 1.4667 (2020 high) to 1.2005 (2021 low) at 1.3022. Sustained break there should confirm that the down trend from 1.4667 has completed after defending 1.2061 long term cluster support. Further rise would then be seen towards 61.8% retracement at 1.3650. On the downside, however, break of 1.2286 will turn focus back to 1.2005 low again.
