USDCAD has been bearish for the last few weeks and unfolded five waves down from 1.3657, which is an impulse and we know that every impulse will be retraced by a three-wave recovery, minimum. As such, we think this three-wave recovery can be now underway after a sharp bounce in the last few sessions, from a new low, which suggests that wave (5) is bottoming. As such, be aware of more upside in the near-term, possibly back to 1.332-1.3380 key resistance area.
Traders should also keep an eye on that daily trendline support; we have to see this one broken before major change in trend is coming into play. IN fact, while this trendline holds a drop from 2022 highs can even be wave B.
