Canadian Dollar Working Towards 1.0173

Commentary: Last week, we wrote to “a drop below 1.0004 to complete 5 waves down from 1.0173 would potentially lead to a larger corrective rally back to 1.0173 (former resistance) before a drop to yet a new low.” There is no change to this outlook.

A rally back to 1.0173 (the 38.2% of 1.0591-.9936 is at 1.0186) would be wave iv of larger wave 3 in the 5 wave bear cycle from 1.0866. A more significant rally is possible and we will assess bullish potential as the advance unfolds. Strategy: Remain bullish, against .9936, target 1 is 1.0173, target 2 is TBD