Falling stocks has led to falling oil prices and lower gold and commodity prices this morning. As a result, the USDCAD has been falling steadily as it tends to be effected by the value of oil and commodity prices.
The USDCAD broke through the downtrend line that has been in place since July. The pair has also moved above the 38.2% retracement at the 1.1048 level. The next target is 1.1093 the R5. Above that level is the 50% retracement at the 1.1176 price level.
We are looking for the 4the wave correction and then the 5th wave to 1.2000 area.