Commentary: We are not too confident in the bearish USDCAD bias right now. Previously, we wrote that “either wave B within the A-B-C correction from 1.0248 (or wave 2 within a 1-2-3-4-5 impulse) is complete or close to complete at 1.0080. Even if price does exceed 1.0080, the next move of consequence is lower towards .9500. The bearish bias is strong as long as price is below 1.0248.” The alternate bullish count treats the rally from .9841 as wave 3 instead of c, which means that the rally could accelerate. Additionally, the pair is breaking through a resistance line drawn off of the March and August 2007 highs. In the event of a decline, support should be strong near 1.0050.
Strategy: Bearish, against 1.0248 BUT look to exit near 1.0050 if given the chance
Al Bawaba
