USDCAD is moving higher and has now returned to the 2026 highs, suggesting that the recovery from the August 26 low that we have been tracking for the past few weeks is indeed unfolding impulsively rather than correctively.
What is important about the current rise is that an impulse develops in five waves, and we still cannot count all five waves higher. This suggests that after a pullback, there could be more upside to come. On a retracement, the 1.4100–1.4160 area could act as support and potentially provide an interesting area for a new rebound, while the market remains above 1.4000.
On the daily chart, we are tracking an impulsive rally within wave C of an ABC correction in black wave B. However, there could still be room for further upside toward the 1.43–1.45 resistance zone before the bears potentially regain control for a higher-degree black wave C.
Comments
Log in or sign up to join the conversation.