USDCAD Rises in Predictable Elliott Wave Manner

What will USDCAD bring next? That is the subject of discussion in our latest EW PRO analyses! SUBSCRIBE NOW!

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? That is the subject of discussion in our latest EW PRO analyses! SUBSCRIBE NOW!

New to Elliott Wave?

Elliott Wave principle offers a completely new understanding of what the nature of the markets is, what drives them and what can be derived from their movement. This course is for those of you, who have been looking for an honest Elliott Wave guide, describing the method’s advantages over other trading tools, but not hiding its weaknesses.

Check Video Course    or     Check our eBook


See our Video Course
or check our eBook

Last year over 60k readers trusted EWM Interactive to help them in their trading decisions.

I’m very happy i discovered your service. Thanks so much and keep up the good work!

- Xavier N.

Just loving your analysis. Thank you so much, really wished you add some more currencies to your list You have a client for life :)

- J. Kotzee

I love the way EWM does business: response times & overall friendly demeanor are fantastic... and the prices are very fair. The trade recommendations read like like they come from a seasoned trader that is used to winning. Couldn't ask for more.

- C. Montgomery

I love the way EWM does business: response times & overall friendly demeanor are fantastic... and the prices are very fair. The trade recommendations read like like they come from a seasoned trader that is used to winning. Couldn't ask for more.

- C. Montgomery

I’m very happy i discovered your service. Thanks so much and keep up the good work!

- C. Montgomery

Just loving your analysis. Thank you so much, really wished you add some more currencies to your list You have a client for life :)

- C. Montgomery