Daily Pivots: (S1) 1.4016; (P) 1.4062; (R1) 1.4088; More…
No change in USD/CAD’s outlook as range trading continues below 1.4139. Intraday bias remains neutral for the moment. Further rally is expected with 1.3970 support intact. On the upside, decisive break of 1.4139 resistance will resume whole rally from 1.3538. Next target is 61.8% retracement of 1.4791 to 1.3538 at 1.4312. However, firm break of 1.3970 will suggest near term reversal, and bring deeper fall back to 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.
