USDCAD and AUDUSD Can Face A Reversal – Elliott wave Analysis
USDCAD made a nice drop down from 1.2996 level, where corrective wave iv as part of an ending diagonal had ended. Current weakness we now see as sub-wave v of C, which can look for support near the 1.2925 level, level of a former swing low and bounce higher in five waves. An impulsive rally above the 1.2996 level would suggest more upside into wave 3).
AUDUSD has a similar scenario going on as USDCAD, however here we are observing an ending diagonal in wave c of 4, in a bullish correction. We see final leg v) of c in play, which is now trading at Fibonacci resistance ratio of 50.0, from where a new bearish reversal may follow. A drop in five waves, and a break below the 0.7097 level will confirm a completed correction and more weakness.
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