close icon

USDCAD Rises in Predictable Elliott Wave Manner

What will USDCAD bring next week? That is the subject of discussion in our next premium analysis due out late Sunday!

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 decline in crude oil made sense after its long rally to over $76 a barrel, the two don’t always move in sync. Fortunately, USDCAD has its own charts and patterns that forex traders can solely focus on. The chart below, for example, was sent to our subscribers on August 2nd. It revealed the bullish Elliott Wave setup that planted the seeds of last week’s surge.

USDCAD Elliott Wave Setup Plants Seeds of a Rally

The hourly chart of USDCAD focused on the structure of the recovery from 1.2007 to 1.2808. As visible, it looked like a five-wave impulse, labeled 1-2-3-4-5, followed by a simple a-b-c zigzag correction. Taken together, the two patterns formed a complete 5-3 Elliott Wave cycle.

According to the theory, the trend was supposed to resume in the direction of the impulsive sequence. Hence, with the pair under 1.2480, we thought more strength can be expected going forward. Twenty days later now, the updated chart below shows how the situation developed.

USDCAD Climbs to New High

The rate started rising almost right away. With the exception of a small consolidation between 1.2480 and 1.2590, the bulls remained firmly in control the entire time. USDCAD exceeded the top of wave 5 on Thursday, August 19th, thus reaching the setup’s initial target and then some.

USDCAD and oil prices do, indeed, have an inverse relationship most of the time. This fact, however, doesn’t make predictions about them any easier. The good news is they produce their own Elliott Wave patterns to help us stay ahead of the market.

What will USDCAD bring next week? That is the subject of discussion in our next premium analysis due out late Sunday!

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 »

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 »

USDTRY Drop Accelerates as Elliott Wave Predicted

The Turkish Lira hit its highest level against the U.S. dollar in six months. The country economic and legal reforms announced last year coupled with tighter monetary policy appear to be giving the desired effect. USDTRY is down 19.3% from its November 2020 high after being in an uptrend since mid-2008. Most analyst, however, are…

Read More »

More analyses