Last week’s hourly bear triangle did not produce the expected decline but rather a quick thrust and reversal. Bigger picture we have high conviction that a wave-(2) correction is consolidating the initial wave-(1) from 1.06 to 1.10. That means that once wave-(2) completes (if it hasn’t already), that a powerful wave-(3) rally will follow. Our base case is that wave-(2) is still unfolding. S/t, we are viewing the decline from the high as an (a)-(b)-(c) correction with waves-(a) and (b) likely complete. A symmetrical correction targets a further decline to 1.0730 and the .618 retrace of wave-(1) is 1.0765. Prices will need to better 1.0956/0988 in order to negate this preferred count. Conviction: Med Levels: Support – 1.0878, 1.0858, 1.0811 Resistance – 1.0925, 1.0956, 1.0988
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