Daily Pivots: (S1) 1.3652; (P) 1.3704; (R1) 1.3760; More….
USD/CAD’s rally continues and reaches as high as 1.3757 so far. Intraday bias remains on the upside for the moment. Current rally is part of the larger rise from 1.2460 and should target next medium term fibonacci level at 1.3838 ahead. We’d be cautious on topping there. On the downside, below 1.3649 minor support will turn bias neutral and bring retreat first.
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 1.3222 support 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.