USD/CAD Daily Analysis
USD/CAD’s break of 1.2685 minor resistance suggests that a short-term bottom is formed at 1.2516, well ahead of 1.2401 support. Intraday bias is back on the upside for a rebound. Sustained trading above 55 days EMA (now at 1.2714) will bring the further rally to retest the 1.3075 high. On the downside, the break of 1.2516 will target 1.2401 support instead.
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.