Elliott Wave Analysis: USDCAD Looking For A Base; Ending Diagonal Suggest A Change In Trend
USDCAD is at the lows, now approaching 261.8% Fibonacci extension level of wave four circled where pair can be looking for a base. Notice that we see a wedge pattern from the last few weeks, called an ending diagonal which occurs at the end of the trend. As such, we still expect a turning point to higher levels but would now need to see a rise above 1.2800 to confirm a low in place. Patience is key here.
The ending diagonal is a special type of motive wave that occurs primarily in the wave 5 position when price has moved too far and too fast. Some ending diagonal triangles appear in the C wave of an ABC correction. In all cases, the ending diagonal terminates the move of larger patterns.
An Ending Diagonal Pattern:
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