Good day traders!
USDCAD made a new rally yesterday, away from the 1.26220 region, where a potential low for a higher degree wave C) had been found. This sharp recovery can indicate a completed higher degree bearish correction since the end of October, and more upside to follow. We see support for a minor pullback at 1.26650 swing support, where the price can bounce again.
USDCAD, 1h
Now switching to AUDJPY, where we see a sharp bearish reversal from yesterday, away from 86.19 level where the corrective wave 4 found a top. We can also see that the upper corrective channel line and Fibonacci ratio of 50.0 played out well and reacted as a resistance and turned the price lower. This drop suggests more weakness ahead, ideally in an impulsive fashion, which means a clear five-wave pattern with no significant overlaps(of waves one and four).
AUDJPY, 1h
