Daily Pivots: (S1) 1.3937; (P) 1.3975; (R1) 1.4024; More…
USD/CAD’s strong rebound suggests that pullback from 1.4078 has completed at 1.3886. That also keeps the rally from 1.3538 intact. Intraday bias is back on the upside for retesting 1.4078 resistance first. On the downside, though, break of 1.3886 will resume the fall to rising channel support (now at 1.3845).
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. However, firm break of 1.3725 will revive the case that fall from 1.4791 is indeed a larger scale correction.
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