Daily Pivots: (S1) 1.3918; (P) 1.3962; (R1) 1.3989; More…
USD/CAD’s fall from 1.4078 accelerated lower, but it’s still staying above 1.3930 support. Intraday bias remains neutral first. On the upside, break of 1.4006 will indicate that the pullback has completed. Intraday bias will be back on the upside for 1.4078 and above to resume the rally from 1.3538. However, decisive break of 1.3930 will be the first sign of bearish reversal, and bring deeper fall to channel support (now at 1.3835).
In the bigger picture, price actions from 1.4791 medium term top is likely just unfolding as a correction to up trend from 1.2005 (2021 low). Based on current momentum, rise from 1.3538 is the second leg, and a third leg should follow before up trend resumption. That is, range trading is set to extend for the medium term. For now, this will remain the favored case as long as 1.3725 support holds.
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