Daily Pivots: (S1) 1.2436; (P) 1.2531; (R1) 1.2589; More…
The strong break of 1.2519 support suggests completion of rebound from 1.2401. Intraday bias in USD/CAD is back on the downside for 1.2401 support first. Firm break there will resume larger decline from 1.2899 to retest 1.2005 low. On the upside, though, break of 1.2675 will flip bias back to the upside for 1.2899 resistance instead.
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.
