Daily Pivots: (S1) 1.3693; (P) 1.3716; (R1) 1.3754; More….
Intraday bias in USD/CAD remains on the upside for medium term fibonacci level at 1.3838 ahead. Whole rise from 1.2460 is seen as a corrective move. Hence, we’ll be cautious on topping around 1.3838 to bring reversal. On the downside, break of 1.3649 support will now be the first signal of topping and will turn bias the downside for 1.3534 resistance turned support.
In the bigger picture, price actions from 1.4689 medium term top are seen as a correction pattern. The first leg has completed at 1.2460. The second leg from 1.2460 is likely still in progress and could target 61.8% retracement of 1.4689 to 1.2460 at 1.3838. We’d look for reversal signal there to start the third leg. However, break of 1.3222 support will argue that the third leg has already started and should at least bring a retest of 1.2460 low. Meanwhile, sustained trading above 1.3838 would pave the way to retest 1.4689 high.
