Canadian Dollar Technical Outlook

Big picture, there are 5 waves up from the 2007 low of .9050. The decline from 1.3068 is the correction (either a b wave of a 2nd wave) of that advance. The first level of potential support is the former 4th wave extreme at 1.1459. Fibonacci support is then at 1.1060 and 1.0590. I wrote yesterday that “a drop below 1.1475 could complete a double zigzag (7 waves). The new low would create divergence with RSI as well so a low and reversal is possible within the next several days.” Although there is not enough evidence to suggest that a low is in place yet, strength is what I am looking for. If near term structure confirms a low (5 waves up), then I’ll turn bullish.