The USDCAD exchange rate has been in a steady rise this week. Are the bulls getting exhausted now? Should traders prepare for a reversal soon?
The 30-minute chart of the USD CAD rate shows an impulsive rally, where wave 5 seems to be an ending diagonal. The Elliott Wave Principle states, that after every five waves prices should reverse for a correction.
However, ending diagonals are tricky patterns. This means that a reversal will be confirmed only if prices break the lower line of the diagonal. If this is the correct count, we should expect figures around 1.1050 or even lower for the USD CAD rate.