Canadian Dollar (Forex: USDCAD) is at new high after very sharp reversal from 1.0267 swing low. We have reworked out previous bearish Elliott wave count for USDCAD. We are tracking a new count now which still shows a three wave rise from 1.0180.

Elliott wave patterns suggest that recent move is an expanded flat correction in wave (b)/ (ii). The only question now is if current leg up is wave (c) of a three wave retracement or is it wave (iii) of a new impulsive rally that will send USDCAD much higher in days ahead. For now it's too soon to confirm any scenario but we definitely need to see a reversal down from around 1.0500 region that could be a next projected zone.

USDCAD 4h Elliott Wave Analysis Chart

Expanded Flat Elliott Wave Pattern

Expanded Flat has internal structure of 3-3-5 sub waves where wave B moves beyond the start of wave A. Wave C ends more substantially beyond the ending level of wave A and it appears in wave two or four in an impulse, wave B in an A-B-C, wave X in a double or triple zig-zag, or wave Y in a triple threes.

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