USD/CAD stayed in consolidation last week and outlook is unchanged. Initial bias remains neutral this week first. On the upside, above 1.4035 minor resistance will bring retest of 1.4104 high. Firm break there will resume larger up trend. On the downside, below 1.3930 will extend the correction to 1.3841 cluster support (38.2% retracement of 1.3418 to 1.4104 at 1.3842).
In the bigger picture, up trend from 1.2005 (2021) in in progress. Next target is 61.8% projection of 1.2401 to 1.3976 from 1.3418 at 1.4391. Now, medium term outlook will remain bullish as long as 1.3418 support holds, even in case of deep pullback.
In the longer term picture, price actions from 1.4689 (2016 high) are seen as a consolidation pattern, which might have completed at 1.2005. That is, up trend from 0.9506 (2007 low) is expected to resume at a later stage. This will remain the favored case as long as 1.3418 support holds.
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