Quick Canadian Dollar Bullish Update

This daily chart shows that our dollar is in a bullish phase which I’m counting as a bear market rally.  Zigzags and flats end with 5 wave runs and in this case, only wave 1-2 has shown itself.

Since the early 2019 bottom, we also got a higher low which is a sign of a conventional bull market.  Just because some asset class goes up doesn’t mean it’s in a bull market.

This rally sure can fit into a bearish rally and we need to complete a full set of 3-4-5 waves before I turn bearish again.

I’m not going to give you a price forecast but diagonal 4th wave rallies can come back so far that we can swear a bull market has arrived.  A retracement back to the wave 2 top can happen but time must do its thing.

For now, I will keep the decline as a 5th wave decline but I’m already looking at alternate wave counts.

Short term I’m very bullish on our CAD but longer-term could be a different story.

 

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