USD/CAD: What's Next?

At the end of July, we published an article titled “USD/CAD: Going to 1.40.” At the time, we were looking for a significant bottom to form in the USDCAD. After reversing sharply off of its August 16 high, it is time to update our technical outlook and the wave structure. The short term outlook for USD/CAD is now bearish while the long term turn scenario remains valid as long as price is above 1.0070.