Daily Pivots: (S1) 1.2495; (P) 1.2541; (R1) 1.2571; More…
USD/CAD is picking up downside momentum again and intraday bias stays on the downside for 1.2448 support first. Firm break there will argue that whole corrective pattern from 1.2005 has completed and bring retest of this low. On the upside, however, break of 1.2623 minor resistance will mix up the outlook again and turn intraday bias neutral first.
In the bigger picture, focus stays 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. However, rejection by 1.3022 will maintain medium term bearishness. Break of 1.2005 will resume the down trend from 1.4667 and that carries larger bearish implications too.
