USDCAD turned south two weeks back from above 1.1200 resistance region where we called end of a wave 3 that is part of an impulsive price action from 1.0170. We know that impulses are five wave pattern, and if we consider that larger trend on this pair is up, then we may suspect that retracement from the highs is probably just another correction within ongoing uptrend. With that said, we labeled a pullback as wave 4 that may send prices up in wave 5 in the next week or two. We expect new high as long as pair trades above 1.0700 invalidation level.

USDCAD Daily Elliott Wave Analysis

USDCAD Four Hour

USDCAD did not cross 1.1120 resistance yet, so it seems that pair is still moving south within incomplete wave 4. Wave 4 is a corrective leg which can now form a complex correction with 1.0950 test yet to come. From a larger perspective our bias is still bullish because bigger trend is still up, so we expect that sooner or later USDCAD will turn up into wave 5, but 1.1120 break would be needed as confirmation.

USDCAD 4h Elliott Wave Analysis

USDCAD One Hour

Another commodity currency that may turn bearish against the USD in coming days is Canadian dollar. On USDCAD price chart we see lower lows and lower highs which is identification of a downtrend, but because of overlapping structure we think that fall will not last long. We see a double zigzag, now moving south in wave (c) final leg in a corrective sequence that may find a support around 1.0900.

USDCAD 1h Elliott Wave Analysis

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