USDCAD is looking higher for wave 5 as we see an unfinished five-wave impulsive cycle from Elliott wave perspective.
USDCAD is breaking and looking higher, now making some extended upward move which is acting like an impulse because of an extended and sharp move up from 1.3. As such, we think this can be impulse wave 3 where pair can slow down for a corrective pullback into wave 4. Ideally that upcoming wave four will then stop and stabilize at the upper line of a base channel.
More near-term weakness on USCAD for deeper wave four also make sense if we consider a recent bounce on crude oil, from the lower side of a wedge.
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