USDCAD In A Bullish Trend – Elliott wave analysis
USDCAD ended a three-wave, A)-B)-C) correction within a bigger wave 2 at the 1.294 level, from where a new rise started developing. Rise is sharp and impulsive so this suggests further upside. We see a five-wave move in the making from the 1.294 level, which can be labelled as a wave 3, with price targeting the 1.47/1.49 zone, where a temporary top, and a wave 4 correction may start forming.
On the 4h chart of USDCAD we have a better look at the impulsive structure, from end of January, which can now be slowing down for a temporary pullback. We can see at latest highs a wave 3 completed impulse, followed by a temporary three-wave correction in 4. Support can be at the Fib. Ratio of 38.2/50.0 1.41/1.39 zone, where a new rise into a fifth wave may show up.
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