Elliott wave Analysis: USDCAD and USD Index Developments
USDCAD made a sharp bearish reversal down from 1.366 level, an impulsive wave A) to be specific which looks to have found a base at the 1.317 level. A recovery that followed from the lows can be part of a temporary three-wave pullback labelled as wave B), which can retrace towards the 1.344 level(level of a former swing high) and there find resistance and make a reversal lower. Also, Fibonacci ratios of 38.2 and 50.0 can react as possible turning point zones for the pair.
USDCAD, 4h
USD Index is turning to the upside, showing first evidences of a completed leg y of B correction at the 95.00 level. In such case, we expect to see price unravel a five-wave recovery into wave C, however be aware of temporary pullbacks during this uptrend. At the moment we see price unfolding sub-wave i of C, which can look for resistance near the 96.96 swing high.A decisive break above the upper channel line connected from 97.70 level would be another sign of a completed pullback and more upside.
USD Index, 4h
Disclosure: Please be informed that information we provide is NOT trading recommendation or investment advice. All of our work is for educational purposes only.
http://www.ew-forecast.com/service
Find more: Contributing Authors
