Daily Pivots: (S1) 1.3743; (P) 1.3799; (R1) 1.3842; More…
USD/CAD’s break of 1.3786 support confirms short term topping at 1.3946, on bearish divergence condition in 4H MACD. Intraday bias is back on the downside for 55 D EMA (now at 1.3726). Sustained break there would dampen the original bullish outlook and bring deeper fall. On the upside, above 1.3855 minor resistance will bring retest of 1.3946 first.
In the bigger picture, price actions from 1.3976 (2022 high) are viewed as a corrective pattern, that might have completed at 1.3176 (2023 low) already. Firm break of 1.3976 will confirm resumption of whole up trend from 1.2005 (2021 low). Next target is 61.8% projection of 1.2401 to 1.3976 from 1.3176 at 1.4149. This will be the favored case as long as 1.3588 support holds, in case of pullback.
. Sustained break there would dampen the original bullish outlook and bring deeper fall. On the upside, above 1.3855 minor resistance will bring retest of 1.3946 first.){kind=link}