There is a cluster of wave relationship showing up in the 1.27 handle. If we successfully break above 1.28 (I’m showing a small degree false breakout zone of 1.2800-1.2820), then I’m eyeing 1.30-1.31.
Above 1.28, prices should hold above the previous wave 1’s.
Due to the multiple wave relationships in the 1.27 handle, a dip to 1.2600 is higher probability. This would be a dip to buy and let the market dictate what happens from there from an perspective.
The trade plan for the USDCAD is simple, buy a break above 1. 2800 or a dip to near 1.2600.
The long opportunity is for a couple hundred pips so it may drag on for a few days.
Check out my reply to Lighthouse above, I neglected to include the sentiment readings in the original picture...extreme pessimism in the pair which is fuel for further gains (it is a contrarian signal). I thought you might find it helpful as well.
I'm looking for a small degree 5 wave impulsive move higher, followed by a 3 wave downward move to improve our bullish entry. If we immediately move up to the grey line now, that might be our 5 waves higher from this morning.