Daily Pivots: (S1) 1.3931; (P) 1.3954; (R1) 1.3982; More…
USD/CAD’s fall accelerate lower today and intraday bias stays on the downside. Current development argues that rise from 1.3538 has completed at 1.4139, on bearish divergence condition in D MACD. Deeper fall should be seen to 61.8% retracement of 1.3538 to 1.4139 at 1.3768. Firm break there will argue that whole decline form 1.4791 might be ready to resume through 1.3538 low. For now, risk will stay on the downside as long as 1.3970 support turned resistance holds, in case of recovery.
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.
