Usdcad after Poloz's statement.

Will take 3 to 5 years for CAD economy to recover from lower oil prices

The words above were those of the Bank of Canada Governor- Poloz

Seems the Governor has lost a bit of confidence which will definitely further worsen the CAD performance.

This supports our general bullish outlook and we expect Usdcad to soar higher unless the price of Crude oil perform much better.

Based on our recent updates, we were expecting a bearish reversal at 1.32-1.325, price soared to 1.327 and fell sharply.

We expected the sharp intra-day decline to continue to 1.31 but with this statement, we will see a rally before the dip would continue.

If price , after the current rally, dips to around 1.31, it will be fine to look for good bullish opportunity to join the bullish party.

And in case we do not see the dip, there is an alternative view in the chart below.

We may have a prolonged impulse wave upside to 1.33 price level before any dip would be seen.