USD/CAD’s strong rally last week suggest that corrective fall from 1.3946 has completed at 1.3418 already. Initial bias remains on the upside this week. Sustained break of 61.8% retracement of 1.3946 to 1.3418 at 1.3744 will pave the way to retest 1.3946. On the downside, below 1.3702 minor support will turn intraday bias neutral first.
In the bigger picture, sideway consolidation pattern from 1.3976 (2022 high) might still extend further. While another decline cannot be ruled out, 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.
