Commentary: The USDCAD dropped to .9936 to complete 5 waves down from 1.0173. We wrote yesterday to look for consolilation in a 4th wave correction before a drop to a new low (below 1.0004). A drop below 1.0004 to complete 5 waves down from 1.0173 would potentially lead to a larger corrective rally back to 1.0173 (former resistance) before a drop to yet a new low.
That would possibly complete the entire decline from 1.1825. This scenario is playing out as the USDCAD has rallied over 100 pips from the low this morning. Look for at least a rally back to 1.0173. We willl be able to better assess the situation as the form of the advance unfolds. Strategy: Bullish now, against .9936, target 1 is 1.0173, target 2 is TBD