Usd/Cad bounced nicely higher few sessions back from around 0.9764 where
base channel reacted as a very good support, right in the territory of a
previous wave four. For now, however, critical area is still below the
lowest base channel support line, as wave 4 could be more complex than
firstly thought; it could be triangle or even flat, but in both cases
pair should continue higher, into a wave 5 towards 1.01.

Meanwhile traders must also
keep an eye on oil, which is highly correlated with Canadian dollar. If
oil prices fall, Canadian dollar will follow and vise-versa. On oil, we
also think that prices are in a corrective pull-back, labelled as a wave
(iv) which may compete very soon. Resistance region is shown between
85.87, from where we expect a fall that should support Usd/Cad.