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USDCAD is moving nicely to the upside, most likely trading higher within an impulsive structure after recent strong and sharp extended move up from 1.0580.

Based on the personality of the move and acceleration after the break out of the base channel, we suspect that the pair is in wave three of three, typically the strongest wave in the sequence.

However, we see some Fibonacci levels at 1.1200 and 1.1380 zone where pair may find a temporary resistance, but only temporary for a pullback down in black wave 4 to that base channel where the upper trendline may cause a new leg up on the pair.

usdcad jan 29 2014daily technical elliott wave analysis for currency tradersFurther reading: Canadian dollar forecast.