Daily Pivots: (S1) 1.2658; (P) 1.2719; (R1) 1.2806; More…
USD/CAD dropped sharply to as low as 1.2619, but recovered ahead of 1.2604 near term support. Intraday bias is turned neutral first. As long as 1.2604 support holds, we’d still slightly favor another rally. Break of 1.2963 will target 1.3022 key medium term fibonacci level. Sustained break of 1.3022 will carry larger bullish implications. However, firm break of 1.2604 will bring deeper fall back to 1.2286 support instead.
In the bigger picture, focus will be on 38.2% retracement of 1.4667 (2020 high) to 1.2005 (2021 low) at 1.3022. Sustained break there should confirm that the down trend from 1.4667 has completed after defending 1.2061 long term cluster support. Further rise would then be seen towards 61.8% retracement at 1.3650. On the downside, however, break of 1.2286 will turn focus back to 1.2005 low again.
