Canadian Dollar Inverse Head and Shoulders

[B]Commentary:[/B] The USDCAD is little changed. "We have been looking for a bottom due to speculative positioning and the longer term wave structure, which has an ending diagonal unfolding from 1.4000. The rally from 1.0400 is impulsive, indicating that the trend has turned. A bullish bias is warranted against 1.0400.

An inverse head and shoulders pattern may be playing out in the short term as well. A rally through 1.0477 increases confidence in the bullish outlook." The decline from 1.0477 is in 3 waves and the 3rd leg of that decline is also in 3 waves, which bolsters the bullish bias. [B]Strategy:[/B] Bullish now, against 1.0400, target TBD