USD/CAD rebounded strongly after dipping to 1.2401 final week, however misplaced momentum after hitting 1.2617. Preliminary bias is impartial this week first. On the upside, break of 1.2617 will resume the rebound from 1.2401 to 1.2899 resistance. On the draw back, break of 1.2401 will revive close to time period bearishness and goal 1.2005 low.
Within the larger image, focus stays on 38.2% retracement of 1.4667 (2020 excessive) to 1.2005 (2021 low) at 1.3022. Sustained break there ought to verify that the down development from 1.4667 has accomplished after defending 1.2061 long run cluster help. Additional rise would then be seen in direction of 61.8% retracement at 1.3650. Nevertheless, rejection by 1.3022 will preserve medium time period bearishness. Break of 1.2005 will resume the down development from 1.4667 and that carries bigger bearish implications too.
In the long term image, we’re viewing worth actions from 1.4689 as a consolidation sample. Thus, up development from 0.9506 (2007 low) continues to be anticipated to renew at a later stage. This can stay the favored case so long as 1.2061 help holds, which is near 50% retracement of 0.9406 to 1.4689 at 1.2048. Nevertheless, agency break of 1.2061 help will argue that USD/CAD has already began a long run down development. Subsequent goal is 61.8% retracement of 0.9406 to 1.4689 at 1.1424.