Daily Pivots: (S1) 1.2586; (P) 1.2614; (R1) 1.2661; More…
USD/CAD’s rebound from 1.2401 resumed by breaking through 1.2617 temporary top. Intraday bias is back on the upside. Sustained trading above 55 day EMA (now at 1.2629) will bring further rally to upper side of recent range at 1.2963. On the downside, though, below below 1.2561 minor support will turn bias back to the downside for 1.2401 support again.
In the bigger picture, focus stays 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 from 1.4667 and that carries larger bearish implications too.
