Daily Pivots: (S1) 1.4001; (P) 1.4020; (R1) 1.4054; More…
Intraday bias in USD/CAD is turned neutral first with current recovery. Firm break of 1.4039 minor resistance will argue that the pullback from 1.4139 has completed. Bias will be flipped back to the upside for retesting 1.4139. Further break there will resume the rally from 1.3538 to 61.8% retracement of 1.4791 to 1.3538 at 1.4312. On the downside, below 1.3984 will extend the fall from 1.4139 towards 1.3886 support.
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), with rise from 1.3538 as the second leg. 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 1.3886 support holds. However, firm break of 1.3886 will revive the case that fall from 1.4791 is indeed a larger scale correction.
