The USDCAD rally is probably just a correction. The decline from 1.0965 is viewed as the final leg of the decline from 1.3068. The decline divides into 7 sections (4 of which are down and 3 of which are up/sideways). The Elliott labels would be a-b-c-x-a-b-c whereas each a-b-c is a zigzag decline. The final wave (wave c) of the final zigzag is underway now. That wave subvides into what you see in the chart (i-ii-iii-iv-v). The minimum expectation is simply below 1.0200. Wave iv has reversed right at the 38.2% retracement of 3, which is reinforced by former resistance. Rallying above 1.0525 would be the earliest sign that a more important low is in place.
