Dollar Canada may have bottomed in the medium term but it needs to break down the 1.0060 Wall!
* The constructive rally from 0.9800 is encouraging for a medium term reversal.
* But it needs to be corrected before the Dollar can accelerate higher.
* The extension from 0.9980 to 1.0060 is a perfect guide the Dollar should correct.
Dollar Canada is trading very typically as having typically spiked the perfect 5=1 target of 1.0020 to the 1.0060 brick wall it completed an extended fifth wave and therefore a trend sequence from the 98 low.
Although it now needs to correct the entire 260 point rally, it will typically doubly retrace the extension from 99.80 so having retested 99.80 it should have another go at the Brick wall. But as daily trend resistance caps sadly higher at 1.0100 then a later loss of 99.80 should open 99.30 the 50% but spiking below 99 the 61.8%.
Although we sold and will sell strength again with 1.0105 stops because the risk/return probability is so good, we will look to rebuy this decline for an eventual 1.010 to confirm and probably accelerated to at least a C=A expected at 1.0160.
Further videos or commentaries are available form www.MarketVisionTV.com or @EdMatts on Twitter.