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USDCAD came nicely to the downside, clearly with impulsive price action from the 1.4400 area, so it looks like the pair is now approaching some important fib levels where we could see a potential recovery in the near term. After five waves down, the market will normally make at least a three-wave retracement.

USDCAD 4H Chart

From Elliott wave perspective we can see a completed wedge pattern within subwave 5 of (3), so it can be now making a new, higher degree wave (4) correction that can revisit 1.39 – 1.40 resistance area before the downtrend for wave (5) resumes.

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