Daily Pivots: (S1) 1.3748; (P) 1.3768; (R1) 1.3789; More…
A temporary low should be in place at 1.3746 and intraday bias is turned neutral in USD/CAD. With 1.3870 resistance intact, further decline remains in favor. Sustained trading below 61.8% retracement of 1.3538 to 1.4139 at 1.3768 will argue that whole fall form 1.4791 might be ready to resume. Retest of 1.3538 low should be seen next. On the upside, however, break of 1.3870 resistance will indicate short term bottoming, and turn bias back to the upside for stronger rebound.
In the bigger picture, current development suggests that price actions from 1.4791 is developing into a deeper, larger scale correction. In the less bearish case, it’s just correcting the rise from 1.2005 (2021 low). But even so, break of 1.3538 will pave the way to 61.8% projection of 1.4791 to 1.3538 from 1.4139 at 1.3365. This will remain the favored case as long as 1.4139 resistance holds, in case of rebound.
