In our previous analysis we have cautioned not to short USDCAD
, as there was strength with uncertainty. Today the price upsurge just proved that. In trading one shall always measure the strength and adapt accordingly. It is a well known fact that the markets mostly do the unexpected and usually opposite the popular belief. In this case many were expecting the price to fall to 1.26 levels, but the market played it's trick again. Currently, a retracement to 1.26 can happen after the completion of 5th wave (purple wave count on chart) possibly near 1.28. Will the price breakout 1.28 levels? Only time will tell. It may be a good opportunity to enter long at a reasonable fall back to ride to 1.28 for short term traders. We are watching.