The USD/CAD reversed nicely, higher from the 1.0134 low where the double zig-zag appears complete. The reason is a sharp rise in the last two trading days, which clearly has personality of wave 3 of a new five wave rally.

The next important thing for bullish continuation is a broken trend-line connected from the latest high. We think the pair is headed higher, ideally towards 1.0500 while 1.0240 level must not be breached. Why 1.0240? We know that when the black wave 4 pull-back will occur, prices must not retrace into a territory of a wave 1.

Source: Top News