Elliott Wave Analysis: USDCAD In A Temporary Bullish Rally 


Gregor - Author BIO photoElliott Wave Analysis: USDCAD In A Temporary Bullish Rally 

USDCAD has made a five wave of a decline from 1.4683 high which is a very strong evidence for a bearish trend. We are talking about black wave A/I, the first wave of this big new bearish cycle, followed by current slow and overlapping price movement that is either wave B or II. So we know that sooner or later downtrend will resume, but the question is from where. Well, based on recent developments we see pair trading in the middle of a correction, with blue subwave B maybe completed, so another leg up to around 1.3400 -1.3500 area can be in the cards, where we would expect big bearish turning point to happen.



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On the lower time frame, USDCAD fell down into wave E) at the start of the month, towards 1.2820 area where support was found; at the lower side of a range. Notice that reaction higher was very strong and powerful back above 1.3000, that is why we see it as an impulse. It could be the first wave within a new unfolding impulsive wave C-circled that can be now finally in play for 1.3400 area as big blue wave B triangle can be finished. That said nothing moves in straight lines so be aware of minor temporary corrections that may unfold, first being red wave 2) within blue wave C.



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By Gregor Horvat

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