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Analysis

USD/CAD is back to bearish mode following strong jobs data from Canada

USDCAD is turning sharply to the downside after last week’s break out of the upward channel, following strong jobs data from Canada. What we see now is a very powerful and strong decline that looks more like a third wave rather than a wave C away from the highs, especially since the price also breached the lower trend-line support of a potential base channel. This puts us in a bearish mode and suggests more weakness in the days or even weeks ahead, as the recovery from June can finally be ending. Expect more downside until we see five waves down from the 1.4139 level. Trend is now bearish while the market trades below 1.40.

USDCAD 4H Chart

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