Canadian Dollar Daily Chart Update

Our Canadian Dollar, had a good run, but for the last month or so it has been on a steady decline of diagonal wave structures. No real zigzag stands out at this time, but the CAD has made a fast move to the downside this morning.  The entire structure from the early 2016 bottom,  has a zigzag written all over it, but is still not quite long enough, to make it a better looking zigzag.  In order for the commodity bullish phase to keep going, I’m sure the CAD has to give us more upside as well. 

The angle of the A5 wave and C5 waves are about the same angles which could support the zigzag idea as well.  For all of 2016 and early 2017 the pattern fits well into a potential triangle which also indicates a higher degree change must take place.   The commercials have been net short but they work better when their net ratios become extreme.  At the  $.78 and $.79 price levels, we may see some support, but a worst case scenario would be a complete 2017 retracement. 

If that happened then we could end up with an expanded “B” wave bottom, after which another bull market can start. 

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