USD/CAD’s break of 0.9745 suggests that whole fall from 0.9972 has resumed and intraday bias is back on the downside for 0.9666. Break there will confirm down trend resumption for 61.8% projection of 1.0285 to 0.9666 from 0.9972 at 0.9589. On the upside, above 0.9841 minor resistance will mix up the near term outlook and turn bias neutral again first.
In the bigger picture, while the rebound from 0.9666 was strong, it’s still too early to conclude medium term reversal. Whole down trend from 1.3063 (2009 high) could still extend further lower as long as 1.0851 resistance holds. But even in that case, as fall from 1.3063 is still looking corrective and hence, we’d expect strong support between 0.9056/9709 to contain downside and bring another medium term rise.(Action