Daily Pivots: (S1) 1.2431; (P) 1.2496; (R1) 1.2541; More…
Intraday bias in USD/CAD remains on the downside for 1.2421 key structural support. Sustained break there will argue that whole choppy rise from 1.2005 has completed. Deeper fall could then be seen back to retest 1.2005 low. On the upside, though, break of 1.2592 support turned resistance will turn bias back to the upside for 1.2773 resistance first.
In the bigger picture, the failure to sustain above 55 week EMA (now at 1.2684) revives some medium term bearishness in USD/CAD. Still as long as 1.2005 support holds, we’d expect another rise ahead, to 38.2% retracement of 1.4667 to 1.2005 at 1.3022. Sustained break there will indicate larger bullish reversal. However, firm break of 1.2005 will resume the down trend from 1.4667 (2020 high) .
