Daily Pivots: (S1) 1.3928; (P) 1.3990; (R1) 1.4041; More…
USD/CAD’s fall accelerates lower today, and considering bearish divergence condition in D MACD, break of 1.3920 support is the first sign of bearish reversal. Intraday bias is back on the downside, and decisive break of 38.2% retracement of 1.3538 to 1.4139 at 1.3909 will indicate that whole rise from 1.3538 has completed. Deeper fall should then be seen to 61.8% retracement at 1.3768 next. For now, risk will stay on the downside as long as 1.4129 resistance holds, in case of recovery.
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.
