USDCAD - Patience needed. Potential setup in the making

The USDCAD is back on the watchlist after this week's drop. It shows some over-extendedness with a Bollinger Band spike. Keep in mind that the first trend wave is usually not the one that leads to a reversal trade. Wave 2 and 3 are much more likely to give a divergence.

The USDCAD is a waiting game now. A push below 1.366 would trigger a few orders which then leads to the second wave. It's one of the potential scenarios we are watching.