Daily Pivots: (S1) 1.3918; (P) 1.3962; (R1) 1.3989; More…
Intraday bias in USD/CAD is back now on the downside with break of 1.3930 support. Fall from 1.4078 should extend to rising channel support (now at 1.3835). Sustained break there will be a sign of bearish reversal. That is, rebound from has completed at 1.4078, and further fall would be seen to 1.3725 support for confirmation. On the upside, though, above 1.3969 minor resistance will turn intraday bias neutral again first.
In the bigger picture, price actions from 1.4791 medium term top is likely just unfolding as a correction to up trend from 1.2005 (2021 low). Based on current momentum, rise from 1.3538 is the second leg, and a third leg should follow before up trend resumption. That is, range trading is set to extend for the medium term. For now, this will remain the favored case as long as 1.3725 support holds. However, firm break of 1.3725 will revive the case that fall from 1.4791 is indeed a larger scale correction.
. Sustained break there will be a sign of bearish reversal. That is, rebound from has completed at 1.4078, and further fall would be seen to 1.3725 support for confirmation. On the upside, though, above 1.3969 minor resistance will turn intraday bias neutral again first.){kind=link}