Canadian dollar has been one
of the best performers last week and it gained strongly against the USD. We can
see a sharp fall on USDCAD back to 1.0050 area, but still only into a third leg
of decline from 1.0340, which is a structure of a contra-trend movements.
Notice that pair is also still above the rising trend-line from 2012 low and
also above 0.9930 critical level of wave X). With that said, it would be too
soon to call end of a bullish period and look lower USDCAD; we still see
current pull-back as wave B) that is part of a complex double zig-zag in wave
(E). An impulsive reversal higher in the next week, back to 1.0200 would
suggest another leg higher, this time to 1.0440 trend-line resistance where we
would be looking for an end of a corrective wave (E) of X triangle as shown on
the weekly chart.
Only sharp fall through 0.9930 would require a different outlook (ALT on the chart).
Only sharp fall through 0.9930 would require a different outlook (ALT on the chart).
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