Daily Pivots: (S1) 1.3808; (P) 1.3844; (R1) 1.3873; More…
Immediate focus in on 1.3789 support as USD/CAD’s fall from 1.3927 accelerates lower. Firm break there will argue that rebound from 1.3641 has completed. Deeper decline should be seen back to 1.3538/3641 support zone. ON the upside, above 1.3927 will resume the rebound towards 1.4139 resistance. Overall price actions from 1.3538 are seen as a consolidation to the fall from 1.4791, and might still extend.
In the bigger picture, price actions from 1.4791 are seen as a corrective pattern to the whole up trend from 1.2005 (2021 low). Deeper fall could be seen as the pattern extends, and break of 1.3538 will target 61.8% retracement of 1.2005 to 1.4791 at 1.3069. For now, medium term outlook will be neutral until there are signs that the correction has completed.
