Canadian Dollar Corrects Losses

[B]Commentary:[/B] We wrote yesterday that “we are looking for a corrective setback in the USDCAD to unfold. The rally from 1.0340 is clearly impulsive, signaling that the trend has changed from down to up.”

That corrective setback is unfolding now and should bottom in the 1.0477-1.0562 zone. This is the 61.8% to 38.2% of 1.0340-1.0699. The low of the former 4th wave is at 1.0523 and is in the middle of this zone. [B]Strategy:[/B] Bullish now, against 1.0340, target TBD