The wave-(2) consolidation that began from 1.0998 did not reach the 1.0765 zone but instead just test the previous pullback in the low 1.08s. It is still not clear if that was the entire correction but as long as prices are above 1.10 and can maintain the recent bull flag breakout, then there is a case that THE wave-(3) rally is commencing. Minimum targets for wave-(3) is 1.12. S/t, an a-b-c decline from 1.1029 completed a corrective bull flag and projects a rally to 1.1150. A move back in to the flag (1.0978) neutralizes the breakout and can threaten a deeper move to 1.0940. Dollar longs need to guard against 1.0978 & 1.0940 in an attempt to capture the next move higher. Conviction: Med Levels: Support – 1.0978, 1.0940, 1.0821 Resistance – 1.1029, 1.1050, 1.1150
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