Canadian Dollar Intraday Correction Review

 

D6Y00-June-10-2016

 

Since early 2016 our Canadian dollar has started to soar. This is a good thing as it closely matched the oil and gold rally as well.  The CAD also looks like it wants to soar with the next sequence all set to go.  Not so fast, as this correction may still need to fully play out. Our present little rally is too choppy to fit into a clean impulse wave, as we could be just at the tip of small degree “B” wave top, and we would still need the trailing “C” wave, to complete.  

I have labeled this as being part of an inverted move, as many of these moves start out the same way as an impulse does, but then they completely fall apart after that. In other words, an “ABC” rally  can be the exact same move as the start of a 1-2-3 wave pattern.  If we still get a move down to newer lows, then this would be a great setup for the correction to complete, and I would have to turn very bullish on the CAD again. 

I started this count out as an inverted move, but we would have enough time to see if a wave three top forms, or if it was a “C” wave bull market. With both patterns we could end up with another spike to the vertical side.  One pattern will be very choppy and the other could be a smooth impulse pattern, and until that “C” wave or wave three fully shows itself, the wave count doesn’t need to be changed. 

The CAD had about a 12 cent move to the upside, so after any correction, we could get another 12 cent move, which could bring us closer to the 85 cent price level.  When this happens then it will be time to review the entire move to see which one wins! 

Right now I am bearish on our CAD, but that would definitely change once a correction has shown itself.   

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