Daily Pivots: (S1) 1.3350; (P) 1.3393; (R1) 1.3416; More…
USD/CAD is staying in consolidation below 1.3436 temporary top and intraday bias remains neutral first. While deeper retreat cannot be ruled out, downside should be contained well above 1.3209 resistance turned support and bring another rally. Above 1.3436 will extend the whole rise from 1.2968 and target 1.3598 high. Break there will resume the medium term rally from 1.2460 to next fibonacci level at 1.3838.
In the bigger picture, price actions from 1.4689 medium term top are seen as a correction pattern. The first leg has completed at 1.2460. The second leg is likely still in progress and could target 61.8% retracement of 1.4689 to 1.2460 at 1.3838. We’d look for reversal signal there to start the third leg. Break of 1.2968 wold at least bring at retest of 1.2460 low. However, sustained trading above 1.3838 would pave the way to retest 1.4689 high.
