Daily Pivots: (S1) 1.3869; (P) 1.3900; (R1) 1.3917; More…
USD/CAD’s fall from 1.3965 extended lower last week and focus is now on 38.2% retracement of 1.3840 to 1.3965 at 1.3780. Decisive break there will argue that whole rebound from 1.3840 has completed, and bring deeper decline to 61.8% retracement at 1.3665 and below. Nevertheless, strong rebound from 1.3780 will retain near term bullishness for another rise through 1.3965 at a later stage.
In the bigger picture, price actions from 1.4791 are seen as a corrective pattern to the whole up trend from 1.2005 (2021 low). Deeper fall could be seen, as the pattern extends, to 61.8% retracement of 1.2005 to 1.4791 at 1.3069. However, decisive break of 38.2% retracement of 1.4791 to 1.3480 at 1.3981 will argue that the correction has completed with three waves down to 1.3480 already. Further break of 1.4139 will confirm and bring retest of 1.4791 high.
