Commentary: We wrote yesterday that “the rally does not look complete. A 5th wave within the 5 wave advance from .9236 is required before we can think about getting bearish. Wave 4 may have ended at .9510 so we favor price rallying through .9724 prior to coming under .9510.”
The USDCAD just hit our target at .9750. The next level of resistance is at the confluence of the 161.8% extension of .9055-.9404/.9236 at .9799 and the 10/22 high at .9825. At this point, it looks like the USDCAD will extend above .9800. A pullback is expected soon though. The form of that pullback will alert us as to whether or not the USDCAD has put in a multi-month bottom or is headed lower.
Strategy: Profit Target Hit at .9750