close icon

AUDCAD Bulls Not Giving Up on Their Parity Dreams

Nine days ago, while AUDCAD was trading at 0.9820 on June 20th, we found a textbook 5-3 Elliott Wave pattern on its hourly chart, which suggested the bulls were going to lift the pair to parity in the next couple of weeks. And indeed, a rally occurred shortly after, but the resistance near 0.9930 did not allow it to continue and caused another decline instead. As of this writing, AUDCAD is hovering around 0.9750. Let’s see how the situation has changed in the last seven trading days.
audcad elliott wave analysis update
The rally from 0.9555 to 0.9935 still looks like a solid five-wave impulse, meaning the rest of the pair’s development is nothing more than a natural three-wave correction. In our previous update we thought the decline to 0.9738, labeled here as wave (a), marked the end of the corrective phase of the cycle. The market did not think so. AUDCAD climbed to 0.9932 on June 22nd, but this recovery was limited to only three waves, which meant the exchange rate was still in pullback mode. The following selloff to 0.9731 fits in the position of wave (c) of a regular flat correction wave B.

In addition, wave B has been developing between the parallel lines of a channel, whose lower line caused a nice bounce today confirming its validity as a support. If this count is correct, the bulls are ready to make another attempt to reach parity. Even if the bears somehow manage to drag AUDCAD a little lower, as long as the pair holds above 0.9555, the 1.000 mark remains a viable target.

Did you like this analysis? Learn to do it yourself with our eBook Elliott Wave guide!



Stay informed with our newsletter

Latest Elliott Wave analysis on different topics delivered to you weekly.

Privacy policy
You may also like:

USDJPY Changes Direction Twice in Two Days

It has been a volatile week for USDJPY. The pair started the session on a positive note and rose to 111.76 on Wednesday. However, instead of keeping up the momentum the bulls quickly exhausted their options and allowed the bears to breach the previous swing low at 110.69 and drag USDJPY down to 110.38 on…

Read More »

Emerging Markets Crisis Not to Blame for EURUSD ‘s Drop

Following several very strong days that saw EURUSD appreciate from 1.1300 to 1.1734 between August 15th and 28th, the European currency is under pressure again. The pair is currently hovering under 1.1590 after a decline to 1.1530 yesterday. As usual, it did not take very long for the after-the-fact explanations for the Euro’s weakness to…

Read More »

As USDJPY Plunges, Ralph Elliott is Smiling Somewhere

It has been a wild ride for USDJPY traders last week. The pair opened at 111.31 on Monday and rose to 111.83 on Wednesday before crashing to 110.69 by Friday. It still managed to close the session above the 111.00 mark, but that is hardly a big relief for breakout traders, who thought joining the…

Read More »

Elliott Wave Pattern Sent EURUSD Higher, Not Trump or Cohen

What a week for EURUSD bulls! The pair is moving sharply up after weeks or even months of suffering. After opening at 1.1437 on Monday, the European currency climbed to almost 1.1623 against the U.S. dollar, before retreating to its current whereabouts near 1.1560. It is interesting to note that Donald Trump’s trade war, which…

Read More »

Riding EURUSD ‘s 1100-Pip Elliott Wave Crash

The way the year began gave EURUSD bulls a lot of reasons to hope for a great 2018. On February 19th, the euro was trading above 1.2400 against the U.S. counterpart, following a phenomenal 2017. Angela Merkel had just successfully negotiated the terms of her fourth mandate as a Chancellor of Germany and Donald Trump’s…

Read More »

Japanese Yen Refuses to be the Dollar’s Latest Victim

Last week, when most major currencies like the euro, the Canadian dollar and the British pound (not to mention the Turkish lira) fell against the U.S. dollar, one currency managed not only to hold its ground, but to actually gain some against the greenback. The Japanese yen ‘s rise dragged the USDJPY pair down to…

Read More »

Two Months Ahead of EURUSD ‘s Turkey-Driven Selloff

EURUSD’s selloff has resumed. The pair fell to as low as 1.1432 earlier today, following a Financial Times report stating the European Central Bank is concerned about some European banks’ exposure to Turkey’s currency crisis. Spain’s BBVA, Italy’s Unicredit, and France’s BNP Paribas were among the big names mentioned in the report. Now, let’s see how…

Read More »

More analyses