Daily Pivots: (S1) 1.2422; (P) 1.2463; (R1) 1.2539; More…
USD/CAD’s break of 1.2497 resistance now suggests that fall from 1.2947 might have completed with three waves down to 1.2286. Intraday bias is back on the upside. Further rally will remain mildly in favor as long as 1.2386 support holds. Rise from 1.2286 would target 1.2894/2947 resistance zone.
In the bigger picture, the rejection by 38.2% retracement of 1.4667 to 1.2005 at 1.3022 argues that rebound from 1.2005 is merely a corrective rise, which is complete. More importantly, the down trend from 1.4667 (2020 high) is not over yet. Sustained break of 1.2005 will extend the down trend to next long term fibonacci level at 61.8% retracement of 0.9406 to 1.4689 at 1.1424. In any case, outlook will not turn bullish as long as 1.2947 resistance holds.
