USDCAD – A larger flat corrective wave is in force
A larger corrective trend started from 0.9405 (July’11 low) appears to be still in force which may be flat corrective wave. A retest of the 1.0510/1.0655 resistance on multi-month basis is possible. The medium term setback from 1.0450 (June high) has the potential to retest the major swing low at 0.9405. A reversal above 0.9950 would refocus on 1.0230/1.0450 ahead of 1.0510. A break below 0.9405 however targets 0.9300/0.9060 next.
The bear renewal from 0.9950 may be a wave [v]. The pair is attempting to recover from 0.9630 and the 0.9775/0.9840 resistance is likely to cap strength now. A break below 0.9700/0.9630 would aim for 0.9500/0.9400 where bulls would attempt to fight back. A reversal above 0.9840/0.9950 however favours bulls.
Anantharajan .P, CMT (Technical Strategist, Precise Trader)
