Daily Pivots: (S1) 1.4000; (P) 1.4033; (R1) 1.4082; More…
Intraday bias in USD/CAD is turned neutral again with current recovery. On the upside, firm break of 1.4061 resistance will indicate that pullback from 1.4139 has already completed, and bring stronger rally to retest this high. Nevertheless, break of 1.3970 will extend the pullback towards 1.3886 support. Strong rebound should be seen there to preserve the whole rally from 1.3538.
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), with rise from 1.3538 as the second leg. 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 1.3886 support holds. However, firm break of 1.3886 will revive the case that fall from 1.4791 is indeed a larger scale correction.
