Daily Pivots: (S1) 1.2597; (P) 1.2651; (R1) 1.2753; More…
USD/CAD’s break of 1.2685 minor resistance suggest that a short term bottom is formed at 1.2516, well ahead of 1.2401 support. Intraday bias is back on the upside for rebound. Sustained trading above 55 day EMA (now at 1.2714) will bring further rally to retest 1.3075 high. On the downside, break of 1.2516 will target 1.2401 support instead.
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.
