USD/CAD’s steep decline and strong break of 1.3588 support argues that while rise from 1.3176 has completed already. Fall from 1.3946 is seen as another falling leg inside medium term range pattern. Initial bias stays on the downside this week for 1.3477 support. Firm break there will target 1.3091/3176 support zone. On the upside, above 1.3617 resistance will turn intraday bias neutral first.
In the bigger picture, current development suggests that corrective pattern from 1.3976 (2022 high) is extending with another falling leg. While deeper decline could be seen, strong support should emerge above 1.2947 resistance turned support to bring rebound. Rise from 1.2005 (2021 low) is still in favor to resume at a later stage.
In the longer term picture, price actions from 1.4689 (2016 high) are seen as a consolidation pattern, which might have completed at 1.2005. That is, up trend from 0.9506 (2007 low) is expected to resume at a later stage. This will remain the favored case as long as 1.2947 resistance turned support holds.
