Daily Pivots: (S1) 1.3350; (P) 1.3393; (R1) 1.3416; More

USD/CAD’s break of 1.3436 temporary top indicates resumption of whole rebound from 1.2968. Intraday bias is back on the upside for retesting 1.3598 high. Decisive break there will resume the medium term rally from 1.2460 and target next fibonacci level at 1.3838. On the downside, however, break of 1.3371 minor support will turn intraday bias neutral first. And that could also be an early sign of short term topping, possibly with bearish divergence condition in 4 hour MACD.

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 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. Break of 1.2968 wold at least bring at retest of 1.2460 low. However, sustained trading above 1.3838 would pave the way to retest 1.4689 high.

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USD/CAD 4 Hours Chart

USD/CAD Daily Chart

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