Canadian Dollar Tests 1.0000

Commentary: PARITY. The USDCAD dropped to 1.0004 this morning and lower prices lie ahead. The vertical drop from 1.0132 is undoubtedly a 3rd wave in a 5 wave decline from 1.0173.

As such, look for consolidation in a 4th wave correction before a drop to a new low (below 1.0004). A drop below 1.0004 to complete 5 waves down from 1.0173 would potentially lead to a larger corrective rally back to 1.0175 (former resistance) before a drop to yet a new low. That would possibly complete the entire decline from 1.1825. We are showing the 25 min chart this morning. Strategy: Flat