Canadian Dollar Technical Outlook

The entire rally from 1.0782 has now been retraced. Additional weakness is expected over the next several weeks in order to complete the decline from 1.1730 and by extension the entire decline from 1.3068. 1.0588 is the next level of potential support (Fibonacci). I wrote yesterday that “drastic divergence with RSI at the recent low suggests additional strength and possibly an outright reversal.” An impulsive rally from the low would be evidence of an outright reversal. Let’s wait and see.