Daily Pivots: (S1) 1.4070; (P) 1.4089; (R1) 1.4124; More…
USD/CAD’s break of 1.4078 confirms resumption of whole rally from 1.3538. Intraday bias is back on the upside for 100% projection of 1.3725 to 1.4078 from 1.3886 at 1.4239. On the downside, below 1.4052 minor support will turn bias neutral again first. But risk will remain on the upside as long as 1.3887 support holds, in case of retreat.
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.
