On the hourly chart of the euro/Canadian dollar (EUR/CAD) currency pair, we are observing a nice rally taking place, from around the 1.4175 region, where a five wave drop found a base. This bullish rally is a sign, that bears may be temporarily over and that a new three wave bullish rise may be in motion for the EUR/CAD. That said, we know that bears will again take charge, but only after this three-wave rally finds a top. This may come in around the 1.4416/1.4492 region, where previous swing highs may act as a resistance and a turning point lower.
The U.S. dollar/Canadian dollar (USD/CAD) currency pair is higher, but in three waves from 1.3262 is approaching an important resistance zone seen near 1.3460, from where the market may turn lower once again. However, it is important to wait on a reversal before we start to look straight down, back to 1.3262. In other words, a break below 1.3372 is needed to confirm a bearish leg towards 1.3262 and even lower. Invalidation level is now at 1.3535; as long it holds, a reversal remains in view.