$CAD did not offer the “…Friday close above 1.0670…” that is necessary to break multi-year resistance. Instead prices have retraced to recent pivots at 1.0609 and are approaching critical support at 1.0562. This pullback is tracing an a-b-c correction and fits as a wave-4. (daily) The 1.0562 target is where the 50% Fibonacci retrace and a=c symmetry target align; this is also the area of the August highs. Look for an impulsive rally from 1.0562 to signal that the correction is complete and a wave-5 rally to new highs is taking hold. (hourly)Levels: Support – 1.0585, 1.0562, 1.0515 Resistance – 1.0625, 1.0670, 1.0707
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Nomura