Daily Pivots: (S1) 1.3304; (P) 1.3341; (R1) 1.3379; More…
Intraday bias in USD/CAD remains neutral as it’s staying in the consolidation from 1.3275 temporary low. Decline from 1.3534 might extend lower and below 1.3275 will turn bias to the downside. But such fall is still seen as a corrective pattern. Hence, we’d expect downside to be contained by 1.3211 cluster level (61.8% retracement of 1.3008 to 1.3534 at 1.3209) and bring rebound. On the upside, above 1.3420 minor resistance will indicate that the pull back is completed and turn bias back to the upside for 1.3534 resistance and then 1.3598. However, sustained break of 1.3211 will dampen this view and target 1.2968 key support level next.
In the bigger picture, price actions from 1.4689 medium term top are seen as a correction pattern. The first leg has completed at 1.2460. The second leg is likely still in progress and could target 61.8% retracement of 1.4689 to 1.2460 at 1.3838. We’d look for reversal signal there to start the third leg. Break of 1.2968 wold at least bring at retest of 1.2460 low. However, sustained trading above 1.3838 would pave the way to retest 1.4689 high.
