USD/CAD’s rally resumed by breaking through 1.3967 temporary top and intraday bias is back on the upside. Decisive break of 38.2% retracement of 1.4791 to 1.3480 at 1.3981 will carry larger bullish implications and target 61.8% retracement at 1.4290 next. On the downside, below 1.3897 minor support will turn bias neutral again first.
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). Rejection by 38.2% retracement of 1.4791 to 1.3480 at 1.3981 will keep the decline intact, and bring another fall through 1.3480 at a later stage. However, firm break of 1.3981 will argue that the decline has completed, and set up further rise back to retest 1.4791 instead.
