USD/CAD Daily Analysis
Further decline is still expected in USD/CAD with 1.2685 minor resistance. Fall from 1.3075 should target 1.2401 support first. A decisive break of 1.2401 support will argue that the whole rebound from 1.2005 has been completed, after rejection by 1.3022 Fibonacci resistance. A deeper fall would then be seen to retest this low. On the upside, above 1.2685 minor resistance will turn bias back to the upside for stronger recovery.
In the bigger picture, the focus stays on 38.2% retracement of 1.4667 (2020 high) to 1.2005 (2021 low) at 1.3022. A sustained break there should confirm that the downtrend from 1.4667 has been completed after defending 1.2061 long-term cluster support. A further rise would then be seen towards 61.8% retracement at 1.3650. However, rejection by 1.3022 will maintain medium-term bearishness. A break of 1.2005 will resume the downtrend from 1.4667 and that carries larger bearish implications too.
