Daily Pivots: (S1) 1.3954; (P) 1.4008; (R1) 1.4045; More…
USD/CAD’s pullback from 1.4139 resumed by breaking through 1.3984 and intraday bias is back on the downside. Deeper fall would be seen towards 1.3886 support. But strong rebound should be seen there to preserve the whole rally from 1.3538. On the upside, above 1.4061 will turn bias to the upside for retesting 1.4139.
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.
