Daily Pivots: (S1) 1.2549; (P) 1.2587; (R1) 1.2606; More…
USD/CAD continues to lose downside momentum as seen in 4 hour MACD. Bur there decline is still mildly in favor with 1.2692 minor resistance intact, for retesting 1.2448. Nevertheless, on the upside, break of 1.2692 will mix up the outlook again.
In the bigger picture, focus stays 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. However, rejection by 1.3022 will maintain medium term bearishness. Break of 1.2005 will resume the down trend from 1.4667 and that carries larger bearish implications too.
