Daily Pivots: (S1) 1.3900; (P) 1.3925; (R1) 1.3965; More…
USD/CAD’s rally continues and the break of 1.3923 confirms resumption of whole rebound from 1.3538. Intraday bias stays on the upside for 1.4014 cluster resistance. Strong resistance is expected from there to limit upside to complete the corrective rise. On the downside, below 1.3884 minor support will turn intraday bias neutral first.
In the bigger picture, price actions from 1.4791 medium term top could either be a correction to rise from 1.2005 (2021 low), or trend reversal. In either case, further decline is expected as long as 1.4014 cluster resistance (38.2% retracement of 1.4791 to 1.3538 at 1.4017) holds. Next target is 61.8% retracement of 1.2005 (2021 low) to 1.4791 (2025 high) at 1.3069. However, sustained break of 1.4014 will argue that fall from 1.4791 has completed, and bring stronger rally to 61.8% retracement at 1.4312.
