Canadian Dollar Technical Outlook

Potential support from a line extended from the 4/16 and 5/8 lows indicates reversal potential. Structurally, the decline from 1.3068 is in 7 waves. This decline could be counted in several ways, but the near term implications are bullish for nearly all counts. The decline could be an A-B-C correction that is nearing completion, a double 3 (two flats), or waves 1 through 3 of an impulse. A rally, back to at least 1.1820, is expected to begin soon. The 50% of the rally from .9055 to 1.3068 is at 1.1061 and is potential support.