Elliott Wave Analysis: USDCAD and SP500
USDCAD broke down from a fourth wave consolidation. We were looking for fifth wave lower as you know, to complete a larger impulsive decline. Well, notice that current bearish leg came out of a triangle, so we know it's a final part of a bigger pattern, which means that market can be now ready to reverse. Technically speaking we expect a recovery in three waves back to 1.3365-1.3400 area from where we will look for a new sell-off, while 1.3535 level is not breached.
E-mini S&P500 keeps moving lower now with sharp intraday price move following recent break below 2369 bearish level. So far, we can see a nice and extended leg down which can be wave three within a five wave decline that can be headed back to 2345 while market trades below 2382.