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USDCAD Far Beyond The First Target

“If this is the correct count, USD CAD should exceed the top of 1.1316.” Do you remember, when you read this in “USDCAD: A Bullish Elliott Wave Setup” three days ago?  As always, it was the Elliott Wave Principle, which encouraged us to make this forecast, because the 15-minute chart of the US dollar against the Canadian was showing one very easily recognizable pattern:
usdcad 26.11.14
The chart above shows USDCAD as it was on November 27th. The easily recognizable pattern is the 5-3 cycle. According to the theory, the exchange rate was supposed to head to the north. And that was the only reason we were bullish. The next chart depicts what happened on the very next day – November 28th.
usdcad 30.11.14
As visible, USDCAD not only exceeded 1.1316, but traveled a lot further. During Friday’s trading the pair reached 1.1443. In comparison, when we published the forecast, the rate was in the zone of 1.1240. This situation provides an excellent example of how the Wave Principle can help you catch big moves in a short period of time. In this case – 200 pips in just one day.
What to expect from now on? In order to answer, we need to take a step back and see the bigger picture on an hourly chart.
usdcad hourly chart 30.11.14
Note, that the decline from 1.1465 to 1.1190 is a double zig-zag correction, which has been developing between the parallel lines of a corrective channel. Corrections are movements against the larger trend. When the trend resumes, they are expected to be fully retraced. It appears the uptrend in USDCAD has resumed, which means the top of 1.1465 could be taken out soon. If this is the correct count, we should not be surprised to see 1.15.

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