Canadian Dollar Technical Outlook

We contend that the drop from 1.0197 is the final leg in a large expanded flat that began at 1.0248. The drop below .9755 satisfied minimum expectations but form indicates that a new low (below .9710) is required before we can begin to look for a bottom.

Possible terminal points from various Fibonacci measurements are anywhere from .9378 to .9691. We will watch form carefully in order to determine the best possible exit. Risk on shorts can be moved to .9845.