Commentary: The USDCAD is putting the trendline / Fibonacci combination that we have mentioned the last week to test. We wrote yesterday that “a daily close above the trendline gives scope to the next level of potential resistance at the 78.6% level (1.0479).” What we saw yesterday was a spinning top that gives scope to a reversal towards weakness in the USDCAD. The short term pattern shows a small 5 wave decline with the current rally as a corrective bounce. A bearish bias is warranted against 1.0216.
Strategy: Bearish against 1.0216, target TBD