The entire rally from 1.0782 has now been retraced. However, the drop below 1.0782 may be wave Y in a complex W-X-Y corrective decline from 1.3068. Daily RSI has turned up from oversold (which was also divergent with the low). The USDCAD rally has picked up steam and cleared initial resistance at 1.0940. The advance has the characteristics of an impulse. Hourly RSI is at an extreme right now (price above 1.1000), indicating that a small 3rd wave is probably near completion. Expect short term consolidation in a small 4th wave followed by a push to yet higher levels before any meaningful correction lower takes place. 1.1120-1.1230 is potential resistance.
