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.