USD/CAD edged decrease to 1.3091 final week however rapidly recovered. Preliminary bias is turned impartial this week first. However outlook will stay bearish so long as 1.3386 resistance holds. Break of 1.3091 will resume bigger decline to 61.8% projection of 1.3653 to 1.3115 from 1.3386 at 1.3054. Nonetheless, agency break of 1.3386 will point out close to time period reversal and switch outlook bullish.
Within the larger image, worth actions from 1.3976 are seen as a correction to up development from 1.2005 (2021 low) solely. Besides, deeper decline is predicted so long as 1.3386 resistance holds. Additional fall might be seen to 61.8% retracement of 1.2005 to 1.3976 at 1.2758. In the meantime, break of 1.3386 can be an indication that the correction has accomplished and produce stronger rally again to retest 1.3976.
In the long term image, worth actions from 1.4689 (2016 excessive) are seen as a consolidation sample solely, which could have accomplished at 1.2005. That’s, up development from 0.9506 (2007 low) is predicted to renew at a later stage. This may stay the favored case as 55 M EMA (now at 1.3048) holds.
