USD/CAD is in bearish mode since Friday which means that move from 1.0243 was actually made only in three waves, so this rally is now part of a larger complex correction, either a flat or a triangle. For now we will focus on a triangle but need to see an evidence of a low around 1.0300 zone and rally back to 1.0468 to confirm idea of a contracting triangle.

On the other hand, if pair will continue straight down in impulsive fashion toward 1.0250 then we will be looking for a flat correction in red wave B where pair can reach levels beneath 1.0240 and even around 1.0200 before bulls come back in view. In either case both patterns are corrective and both suggests that USD/CAD just stopped in larger temporary pause and that sooner or later pair will turn bullish for 1.0650 maybe even 1.0700.

Forex Analysis by Gregor Horvat at ForexPros. com