Daily Pivots: (S1) 1.3598; (P) 1.3620; (R1) 1.3664; More…
While USD/CAD’s rebound from 1.3524 extends, it’s still bounded in established near term range. Intraday bias remains neutral and outlook stays bearish with 1.3571 resistance intact. On the downside, firm break of 1.3480 low will confirm resumption of whole fall from 1.4791, and target 61.8% projection of 1.4791 to 1.3538 from 1.4139 at 1.3365. However, sustained break of 1.3751 will indicate that larger scale corrective bounce is underway.
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, to 61.8% retracement of 1.2005 to 1.4791 at 1.3069. For now, medium term outlook will be neutral at best, until there are signs that the correction has completed, or that a bearish trend reversal is confirmed.
