Elliott Wave Charting: On the 4-hour chart, we can clearly count five waves of decline from the 1.0679 top, which is called an impulsive structure. The recent lows of that move were reached at 1.0235, just a few pips away from the January 1.0223 lows, from where we may see upside momentum.

The market is likely to make at least three waves of an upward corrective move in the near term, since a previous five waves of decline looks to be complete. Before we can confirm a near-term bullish reversal, we need to see impulsive intraday price action on the upside.

The bullish divergences on the RSI and MACD indicators also signal higher prices in the near future.

TheLFB Charting: USD/CAD 4-Hour View

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