Canadian Dollar Correcting Big Gains

The USDCAD appears to have stabilized after piercing 1.1200 yesterday. There is little doubt that the decline from 1.1825 is a 3rd wave. Therefore, any rally should be treated like a correction as a 5th wave decline will eventually take the USDCAD to lower levels.

Initial resistance is the 4/19 high at 1.1309. The next support level is the 10/30/2006 low at 1.1176. Yesterday’s candle was a doji as well, which favors a rally attempt.