Canadian Dollar Channel Line at 1.0393 This Week

Commentary: We were too early in calling the turn but we still expect a reversal. The weekly chart shows why. A 5 wave decline from the 2002 high is nearing its end as evidenced by the ending diagonal (i-ii-iii-iv-v). RSI divergence is also evident on the weekly.

A rally through 1.0756 would strongly suggest that a low is in place. We are looking for a 5 wave rally to get bullish against.

Strategy: Flat