The Downtrend in EURCAD that we've seen since mid 2014 has seen a sharp rally since April of this Year.
We now see the pair retrace to the deepest retracement, the 88.6% fib.
There is still a possibility, that the last leg in this correction turns into a double corrective structure, we often see that in alternation. As well the first leg had shallow retraces so seeing a deep retrace also fits the rules of alternation. If this leg is a wave W, it would target the next leg below 1.30
There may be a good trade setup here as the invalidation levels are quite clear,