“We expect USDCAD to start rising from current levels. This count would be invalidated, if price falls below the start of the impulsive rally at 1.0811.” This in an excerpt from an article, which we published in our intraday section on May 16th. The chart below shows you how the pair looked like, when we made that forecast.
We were bullish on USDCAD, because we had the classical 5-3 Elliott Wave cycle. According to the theory, another 5-wave impulse should have been expected in the direction of the first one. On the next chart you can see what happened.
As you can see, USDCAD did not reach our invalidation level. In fact it went a little lower, only to touch the 61.8% Fibonacci level one more time. Soon after the pair started climbing up as expected, overtaking the previous top in impulsive fashion. However, it looks like the whole pattern is an A-B-C zig-zag. If this is true, do not be surprised, if the next move USDCAD makes is to the south.
