Daily Pivots: (S1) 1.4032; (P) 1.4046; (R1) 1.4070; More…
Intraday bias in USD/CAD remains neutral and more consolidations could be seen below 1.4078. Further rally is expected as long as 1.3930 support holds. Sustained trading above 1.4014/7 will suggest that USD/CAD is already reversing the whole fall from 1.4719, and target 61.8% retracement at 1.4312. However, break of 1.3930 support will indicate short term topping, and turn bias back to the downside for 1.3725 instead.
In the bigger picture, price actions from 1.4791 medium term top could either be a correction to rise from 1.2005 (2021 low), or trend reversal. In either case, further decline is expected as long as 1.4014 cluster resistance (38.2% retracement of 1.4791 to 1.3538 at 1.4017) holds. However sustained trading above 1.4014 will suggest that it’s more likely just a correction, and the larger up trend would be in favor to resume through 1.4791 at a later stage.
