On the USDCAD we can say that price is trading in the final wave C of a higher degree three wave rise of wave B or 2, after a bottom had been made at the 1.3077 level after Janet Yellen’s press conference, labeled as blue wave B-circled.
As such we now think more upside may follow in days ahead, ideally towards the 61.8 Fibonacci ratio, above the high of wave A-circled at 1.3588 level.
At the moment as we can see price touched the 50.0 Fibonacci ratio, which could act as a reversal lower and as we can see recent intraday development suggests a reversal unfolding, but this reversal could be interpreted as only a temporary sub-wave 4) within wave C. If that is the case then this bearish activity will unfold as a temporary correction which will later then push price higher towards the 61.8 Fibonacci ratio. But if price continues to push lower, then we could say that market had already completed blue wave C-circled of wave B or 2.
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Chief Technical Strategist