close icon

USDCAD Ready For A Weak Week?

In our previous analysis of USDCAD, published almost a month ago, we said that “we can prepare for a significant recovery in the near future”. The wave structure of the decline USDCAD went through was not impulsive, so we thought it was corrective. In fact, it seemed like an A-B-C zig-zag. That is why we came up with the following labeling.
usdcad 2.5.15
As visible, we assumed that wave C is over and the recent bounce was the start of the anticipated larger recovery. As a consequence, we did not expect the bears to test 1.1945 again. We were wrong about that. They did test it again. Twice. Both times without success. See the chart below.
usdcad 1.6.15
As you can see, the bottom we thought was going to be the last one, turned out to be just wave “i” of an ending diagonal for wave 5 of C. These developments made the situation difficult to trade, but did not change the overall count at all. So, when wave C was finally over at 1.1919, the bulls returned with a bang. Now, USDCAD is flying in the vicinity of 1.2550. More importantly, the recent recovery has a five-wave structure. According to the Elliott Wave Principle, chances are that USDCAD is going to disappoint this week, because every five waves are followed by a correction in the opposite direction. In our opinion, now does not seem to be the best time to add long positions. Wave 2/B to the south is supposed to begin soon. Better wait for it.



Stay informed with our newsletter

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

Privacy policy
You may also like:

USDCAD and the Anatomy of a Deceiving Correction

In late-September, 2021, USDCAD had already spent over two months in a narrowing sideways range. Despite occasionally breaching the 1.2900 mark during that time, the pair was unable to close a daily session above it. Neither was it able to significantly breach 1.2500. When it comes to narrowing range-bound movements, there is one Elliott Wave…

Read More »

GBPJPY Recovery Takes Shape of an Impulse Pattern

Less than two years ago, during the coronavirus market panic, GBPJPY fell to a multi-year low of 124.04. The last time the pair traded at such levels was in August, 2012, when the world was still recovering from the Financial Crisis. The Covid-19 selloff didn’t last that long though. After plunging 10.9% in March 2020…

Read More »

USDCAD Rises in Predictable Elliott Wave Manner

USDCAD rose significantly this past week, climbing from 1.2512 at the open to as high as 1.2949 Friday. The surge can be attributed to the slide in crude oil prices. Oil and USDCAD are known to have an inverse correlation due to the heavy reliance of the Canada’s economy on the commodity. And while the…

Read More »

Two Months Ahead of the 400-Pip Slide in EURUSD

Economic and fiscal steps taken to help the global economy rebound from the COVID-19 crisis are still in effect in both U.S. and EU. The amount of stimulus by the Fed far eclipsed the measures taken by the ECB. Direct unemployment payments are even creating a labor shortage. Many people prefer to rely on government…

Read More »

Elliott Wave Support Can Send USDZAR 15% Higher

It’s been a bad year for USDZAR bulls. The pair has been declining ever since it reached a high of 19.34 in early-April 2020. As of this writing, it is barely holding above 14.30, down 26% in a little over twelve months. Does this mean now is a good time to join the bears? We…

Read More »

Ahead of EURUSD ‘s Disappointing Start to 2021

Overall, 2020 was a good year for EURUSD bulls. Despite the March crash during the coronavirus-related volatility, the pair ended the year up almost 9%. With more stimulus already in the pipeline at the start of 2021, it made sense to expect further devaluation of the dollar against the Euro. Alas, common sense doesn’t always…

Read More »

USDJPY Gains 450 Pips and Counting in Two Months

2020 wasn’t a good year for USDJPY bulls. Starting from 108.63 in January, the pair closed at 103.32 on December 31st, down 4.9% in twelve months. But what the dollar lost against the yen in the entire 2020 it is now close to recouping in less than three months. USDJPY is approaching 108.50 as of…

Read More »

More analyses