Short term outlook in USD/CAD remains mixed for the moment and it's still bounded in choppy sideway trading inside established tight range. As long as 1.0748 resistance holds, we'll continue to treat price actions in USD/CAD as in consolidation that started at 1.0851. Another fall could still be seen and below 1.0477 will target 1.0405, and even further to 100% projection of 1.0851 to 1.0416 from 1.0748 at 1.0313. On the upside, though, a break of 1.0748 will indicate that such choppy consolidation from 1.0851 is likely completed and rise from 1.0205 should then be resuming for 1.1101 resistance next.
In the bigger picture, a medium term bottom might be in place at 1.0205 with bullish convergence conditions in daily MACD. As noted before, fall from 1.3063 is viewed as a correction to long term rise from 0.9056. Such correction might have already completed with three waves down to 1.0205 already (1.0784, 1.1732, 1.0205). Break of 1.1101 resistance will confirm this case and target 61.8% retracement of 1.3063 to 1.0205 at 1.1971 at least. On the downside, break of 1.0205 will invalidate this view and bring down trend resumption to parity instead.
In the longer term picture, the three wave structure of the fall from 1.3063 to 1.0205 revived the case that it's a correction to rise from 0.9056. Sustained trading above 61.8% retracement of 1.3063 to 1.0205 at 1.1971 will indicate that whole rise from 0.9056 might be resuming for another high above 1.3063.
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