Daily Pivots: (S1) 1.2618; (P) 1.2647; (R1) 1.2687; More…
USD/CAD is losing some downside momentum as seen in 4 hour MACD. But further decline is still expected with 1.2763 minor resistance intact. Firm break of 1.2401 support will argue that whole rebound from 1.2005 has completed. Deeper fall would then be seen to retest this low. However, break of 1.2763 will turn bias back to the upside for stronger rebound.
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.
