Break lower on USDCAD Indicates more Weakness

Updated

USDCAD turned beautifully lower from the upper channel line, which was expected as we were tracking a bigger, complex pattern within higher degree wave B). Current turn lower, and break below the 1.3160 level is now a confirmation for more weakness to follow in a five-wave manner for wave C). That said, we also know that pullbacks may follow, so the next one can be wave 2 which can look for resistance around the 1.317/1.323 area.

Comment

USDCAD broke nicely into new lows, however be aware of temporary support and bullish reversal near 1.2930 region. If we see a five-wave rally above 1.311 level then this could mean an interesting set-up to the upside.

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