Elliott Wave Analysis On AUDUSD And USDCAD
AUDUSD keeps moving higher probably in impulsive fashion if we consider strong rally from 0.7107. It also looks like an extended wave which typically occurs in the middle of a five wave move, so we suspect it’s wave 3 of three. At the same time we can see that price hit 261.8% Fibonacci extension level of wave 2 which is very common projected ratio for wave 3. That said, we think that Aussie can rise even more in days ahead, but after a pullback which can be underway down into a black wave 4 that can be looking for a support near 0.7350-0.7400.
USDCAD has been trading sharply lower for the last few weeks, so either that’s wave 3 in progress as part of a new bearish impulse, or it can be only wave C of a corrective decline, but in either case we expect more weakness as leg from 1.4017 should be made by five waves. That said, be aware of another turn down after a corrective red wave 4) is finished, which can be still underway as a flat, so recent sharp leg down to the lows can be only a sub-wave B. So for now, the ideal resistance for a new sell-off remains at 1.3460-1.3520.
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