After falling quite substantially in April, USDCAD rallied in five clean waves from the early-May low. The fact that the rise has unfolded in five waves indicates an underlying strength in the market that should carry prices higher for some days to come.
Following the five-wave rise, USDCAD has pulled back into a Fibonacci support zone in a three-wave corrective pattern often deemed an "expanded flat."
Now, the wave-2 correction sets up a long trade as part of a wave-3 rally towards 1.1000. Specifically, the trade is to buy USDCAD at 1.0855, place a stop at 1.0805, and use an upside target of 1.1010
Receive three free months of premium trade signals and analysis by visiting TradingAnalysis.com.
Disclaimer: Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors.