Daily Pivots: (S1) 1.3641; (P) 1.3672; (R1) 1.3702; More…
USD/CAD’s recovery suggests that a temporary low was formed at 1.3641 and intraday bias is turned neutral. Some consolidations could be seen but further decline is expected as long as 1.3804 resistance holds. Below 1.3641 will resume the fall from 1.4139 to retest 1.3538 low. Firm break there will extend the whole decline from 1.4791 to 1.3365 projection level.
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.
