Canadian Dollar (Forex: USDCAD) is in bearish mode since Friday which means that move from 1.0243 was actually made only in three waves, so this rally is now part of a larger complex correction, either a flat or a triangle. For now we will focus on a triangle but need to see an evidence of a low around 1.0300 zone and rally back to 1.0468 to confirm idea of a contracting triangle.
USDCAD-Triangle
On the other hand, if pair will continue straight down in impulsive fashion toward 1.0250 then we will be looking for a flat correction in red wave B where pair can reach levels beneath 1.0240 and even around 1.0200 before bulls come back in view.
In either case both patterns are corrective and both suggests that USDCAD just stopped in larger temporary pause and that sooner or later pair will turn bullish for 1.0650 maybe even 1.0700.
USDCAD 4h Elliott Wave Analysis
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