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 and the 5 wave decline from 1.1730 may be wave C of an expanded flat. Even if the larger trend remains down, then the USDCAD should correct a portion of the decline from 1.1730 since the drop from there is in 5 waves and lows are not confirmed by momentum (divergence). To this point, the USDCAD has headed straight down but failure to break below 1.0782 keeps the bullish bias intact.