USD/CAD’s fall from 1.3946 continued last week and extended to as low as 1.3439. But as a temporary low was formed there, initial bias remains neutral this week for more consolidations. Outlook will stay bearish as long as 1.3617 resistance holds. Below 1.3439 will target 1.3176 support next.
In the bigger picture, current development suggests that corrective pattern from 1.3976 (2022 high) is extending with another falling leg. While deeper decline could be seen, strong support should emerge above 1.2947 resistance turned support to bring rebound. Rise from 1.2005 (2021 low) is still in favor to resume at a later stage.
In the longer term picture, price actions from 1.4689 (2016 high) are seen as a consolidation pattern, which might have completed at 1.2005. That is, up trend from 0.9506 (2007 low) is expected to resume at a later stage. This will remain the favored case as long as 1.2947 resistance turned support holds.
