Daily Pivots: (S1) 1.3568; (P) 1.3568; (R1) 1.3647; More….
A temporary top is in place at 1.3647 after USD/CAD fails to sustain above 1.3598 key resistance. Intraday bias is turned neutral first. Some consolidations should be seen but downside of retreat would be contained by 1.3410 support to bring another rally. Break of 1.3647 will extend the whole medium rise from 1.2460 to next medium term fibonacci level at 1.3838. However, break of 1.3410 will turn bias back to the downside for 1.3222 support instead.
In the bigger picture, price actions from 1.4689 medium term top are seen as a correction pattern. The first leg has completed at 1.2460. The second leg from 1.2460 is likely still in progress and could target 61.8% retracement of 1.4689 to 1.2460 at 1.3838. We’d look for reversal signal there to start the third leg. However, break of 1.2968 will argue that the third leg has already started and should at least bring a retest of 1.2460 low. Meanwhile, sustained trading above 1.3838 would pave the way to retest 1.4689 high.
