Commentary: Last week, we wrote that “a large correction is unfolding in the 4th wave position towards the confluence of the 38.2% of 1.0866-.9055 / former congestion near .9750 before the USDCAD reverses and drops below .9000.”
The rally hit .9724 yesterday and the USDCAD has come off nearly 200 pips since. However, the rally does not look complete. A 5th wave within the 5 wave advance from .9236 is required before we can think about getting bearish.
Strategy: Remain Bullish, move risk to .9404 (from .9236), target .9750