Good day traders! Let's take a look at USD/CAD.

USD/CAD made a sharp fall recently, close to 1.2000 psychological level with an extended structure so we labeled leg down from Aug 31 high as sub-wave 3 of 5). We know that the fifth wave has a motive structure so more weakness is expected after current recovery is completed. We are talking about black wave 4 that is trading near resistance of 1.2241 level.

USD/CAD, 4H