Daily Pivots: (S1) 1.2854; (P) 1.2885; (R1) 1.2906; More…
Break of 1.2859 minor support suggest that deeper correction is underway in USD/CAD. Intraday bias is back on the downside for 55 day EMA (now at 1.2789. Sustained break there will target 1.2516 support next. On the upside, break of 1.3077 and sustained trading above 1.3022 fibonacci level will carry larger bullish implications, and bring up trend resumption.
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.
