Canadian Dollar Back on the Offensive?

[B]Commentary[/B]: It is possible that a double zigzag correction is complete at 1.0750 in the wave 4 position (of the 5 wave decline from 1.1879). If this is the case, then the USDCAD will make a new low (below 1.0548) in order to complete a larger 5 wave decline that began in 2002 at 1.6189.

A projected end for the decline is just below 1.0400. This is where channel support from November 2004 comes in. If 1.0750 does not hold, then the next level of resistance is the 23.6% of 1.1825-1.0548 at 1.0850. Short term resistance is between 1.0665 and 1.0698 (shown on short term chart above).

[B]Strategy[/B]: Bearish, against 1.0750, targeting below 1.0548 (TBD)