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I updated the techs this morning to show that the USDCAD is likely to continue 'eroding' towards 1.0733 in a 3rd wave. The period of consolidation that would follow would be the anticpated 4th wave back to (or close to) 1.1168. Interestingly, if the 3rd wave does decline to 1.0733 (or close to this level), then the 38.2% of 1.1824-1.0733 would be at 1.1150. 4th waves often retrace approx 38.2% of wave 3. Regarding the COT implications. The COT is released once a week and is longer term in nature. A bounce back to 1.1150 or so would not do any damage to the downtrend.
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