[B]Commentary:[/B] We wrote yesterday that “a top may be in place at 1.0666, although a more complex correction could unfold towards the mentioned 1.0738. Still, a cautious bearish bias is warranted against 1.0666. Look for a test of 1.0340 if 1.0531 gives way.” 1.0666 was the top and the USDCAD has come under 1.0530.
The 100% extension of 1.0866-1.0530/1.0666 is at 1.0331, close to the 7/24 low of 1.0340. This is an intial bearish target. The bearish case is strong as long as price is below 1.0666.
[B]Strategy:[/B] Remain Bearish against 1.0666, target 1.0340