USD/CAD found a support around 1.02560 last week, from where the first reaction appears to be in impulsive fashion through the upper trend-line of a corrective channel. We know that impulses show direction of a trend or change in trend.

As such, we are looking higher now, and it's also because of a previous three wave decline from above 1.0600 which was a corrective move, so larger trend remains up and is now in continuation mode.

Current wave 2/B could be looking for a support around 1.0300-1.0330. Invalidation point for bullish outlook is at 1.0243.

Forex Analysis by Gregor Horvat at ForexPros. com