We are still bearish
, given all the bearish
signs (listed on the chart). We were expecting a faster down turn for a 3rd wave, however the market went back up invalidating the ABC count, before the 3rd wave. Instead the upmove expanded to 0.764 Fib level. This may indicate a complex top formation in the making. Currently, we will watch whether the Oil
price will tend to follow a triangle top formation.
The implication on Canadian dollar:
As the USDCAD
is heavily correlated to Oil
prices and USDCAD
is still weak ( bear
), we wouldn't recommend to go go long with this pair yet.