Canadian Dollar Tests Extreme

Commentary: Much like the USDJPY is undergoing a topping process in the next few weeks, the USDCAD is undergoing a bottoming process. Wait for price chop lower in a series of 4th and 5th waves before thinking about fading this bear trend.

A rally back to 1.0095 would possibly complete wave 4 in the 5 wave bearish cycle from 1.0866. A subsequent decline would still be expected to register a new low though in wave 5. Things could change but at this point, upside potential looks limited to about 1.0100 and there is no point of reference from which to place a stop (for longs). Strategy: Flat