Canadian Dollar Technical Outlook

The extent of the rally from 1.0782 almost assures that the entire decline from 1.3068 is complete. Additionally, the rally from 1.0782 unfolded as an impulse. On the 10th, I wrote that “I am not sure if the rally from 1.0782 is complete. A thrust higher from a running triangle is possible before a corrective decline. It is best to wait for clarity here before taking a strong stand.” The thrust higher was wave B of an expanded flat. Wave C is in 5 waves therefore a bottom and reversal is favored.