Commentary: “The sentiment indicators that we follow (COT in particular) argue for a bottom to form now (but this has been the case for a while). When a market is extending for some time, we use a trick to try to attempt to identify when a market is likely to turn. Extended impulses will end after either 9 waves, 13 waves, 17 waves, etc (these are all derivations of 5 waves……5 + 4, 5 + 4 + 4, 5 + 4 + 4 + 4).
The current decline is likely wave 13, which should end with one more low (below .9511). Once a low is registered, a small 5 wave rally will serve as our alert to get bullish.” The USDCAD is getting very close to a bottom….a new low (below .9413) would satisfy minimum expectations for the decline.
Strategy: Flat