The USDCAD is expected to break higher from a triangle in the next few weeks. The minimum objective is above 1.0378 but a target is near 1.05 (Fibo extension is near the figure). Now is the time to position for the expected bullish break.
The decline from the 2002 high (1.6189) is in 7 waves and can be counted as a double zigzag correction. If this is correct, then the USDCAD will retrace a good deal of the entire decline over the next several years.
Regardless of the larger pattern, the advance from .9055 is unfolding as a large correction. However, wave C (often the strongest leg of a correction) has yet to commence. A triangle is nearing completion as wave B within an A-B-C pattern (which may be wave A of the next larger degree). Wave C should surge through 1.0378 in the next few weeks.
This is a close up view of wave E. There is the possibility that the wave E decline is complete at 1.0047 but E waves are usually deeper. As such, it is probable that we see a drop next week that ends closer to 1.00. There are Fibo levels at 1.0010 and .9926. Look for a bottom and reversal near these levels. This outlook is intact as long as price is above .9818.
