Canadian Dollar Needs Another High (USDCAD Low) Before a Turn

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.
Strategy: Flat