USDCAD Looking Bullish All The Way – Elliott wave analysis

January 28, 2020 Off By admin-445

Hello traders, today’s article is going to be about USDCAD, its daily and 4h view. Let’s jump in.
On the daily chart of USDCAD we can see that price made a big converging price action within a wave 1 up from 2017; an Elliott wave leading diagonal which found a top at the 1.366 level and started reversing into a corrective retracement. We labeled a fully completed wave 2 corrections, which unfolded a zig-zag: an impulse in legs A) and C), and a triangle in a wave B). A low for the correction was later seen at the 1.294 level, from where a new rise started developing. 

Now on the 4h chart, we have a closer look of a completed impulse in C) of 2, and a strong recovery which can be a new five-wave move higher in progress. We are currently observing a wave 3 in action, which can face resistance/bearish turn into a temporary pullback (4) as part of an impulse near the Fib. the ratio of 200 and near the upper Elliott wave channel line (1.321/1.326 region).