Daily Pivots: (S1) 1.3486; (P) 1.3508; (R1) 1.3537; More….
USD/CAD’s recovery from 1.3405 extends higher today but stays below 1.3563 minor resistance. Intraday bias remains on neutral first. On the downside, break of 1.3405 will resume the decline from 1.3860, as the third leg of the corrective pattern from 1.3976, to 1.3224/61 support zone. Strong support should be seen around there to bring rebound. Meanwhile, firm break of 1.3563 will turn bias back to the upside for 1.3860 resistance instead.
In the bigger picture, the up trend from 1.2005 (2021 low) is still in progress. Break of 1.3976 will confirm resumption and target 61.8% projection of 1.2401 to 1.3976 from 1.3261 at 1.4234. Firm break there will pave the way to long term resistance zone at 1.4667/89 (2016, 2020 highs). On the downside, sustained break of 55 week EMA (now at 1.3282) is needed to confirm medium term topping. Otherwise, outlook will remain bullish even in case of deep pull back.
