Daily Pivots: (S1) 1.2534; (P) 1.2607; (R1) 1.2647; More…
With the strong break of 1.2619 support, USD/CAD’s should have completed a head and should top pattern (ls: 1.2852, h: 1.2963, rs: 1.2812). The development argues that rise from is finished at 1.2963, and possibly the whole pattern from 1.2005 too. Intraday bias is back on the downside for 1.2286 support first. Break there will target 1.2005 low. For now, risk will stay on the downside as long as 1.2812 resistance holds, in case of recovery.
In the bigger picture, focus will be on 38.2% retracement of 1.4667 (2020 high) to 1.2005 (2021 low) at 1.3022. Sustained break there should confirm that the down trend from 1.4667 has completed after defending 1.2061 long term cluster support. Further rise would then be seen towards 61.8% retracement at 1.3650. However, rejection by 1.3022 will maintain medium term bearishness. Break of 1.2005 will resume the down trend form 1.4667 and that carries larger bearish implications too.
