Elliott Wave Analysis On AUDUSD And USDCAD
News of the day is that BOJ did not add stimulus on lasts night meeting and Japan currency got stronger against almost all other counterparts and Nikkei 225 moved sharply down dragging other stock markets with it. Since there is a correlation of the stock market and AUDUSD, this pair is moving down now in the fift wave with possible support seen around 0.7503. After that we expect to see an A), B) and C) pullback with resistance around 0.7648 levels.
USDCAD is still troubling to complete an ending diagonal pattern in the final fifth wave. We still see some room left for the completion of this pattern. Our potential support level is around 1.2430 region and we may expect to see a sharp reversal from there. Be aware that also ending diagonals can overshoot sharply to the downside, before upward reaction may follow.
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