USDCAD is back to the upside. After bottoming at 1.2654, the pair is once again looking bullish just a day after it climbed to 1.3090. But simply being able to identify the support and resistance levels does not mean we could correctly predict the market swings. In order to do so, we would need something more – we need the Elliott Wave Principle. That was the method we applied to the following chart of USDCAD before sending it to our premium clients on Monday, May 30th.(some of the marks have been removed for this article)
It has been three weeks since USDCAD last looked like this. As visible, at the time of the forecast, it was trading around 1.3070. Comprehensive Elliott Wave analysis led us to the conclusion we should expect a decline to at least 1.2800 in wave X down. However, the last major bottom at 1.2460 was not supposed to be touched. Instead, a strong recovery was expected to begin. The chart above was all that was needed to make that prediction. Now, three weeks later, let’s take a look at USDCAD as it is today.
So far so good. The anticipated wave X sell-off began almost immediately. It ended roughly 200 pips above the bottom at 1.2460 and gave the start of the much-awaited recovery, which is still in progress. The Wave Principle once again demonstrated its ability to help traders predict more than just a single move in the FOREX market. Three weeks later, USDCAD is still going according to the forecast we did on May 30th. How many forecasting methods can offer you anything like this?
What to expect from now on? What is the bigger picture saying? Is USDCAD going to continue even higher or the resistance near 1.3090 would turn out to be too strong for the bulls to breach? Prepare yourself for whatever is coming. Order your Elliott Wave analysis due out every Monday at our Premium Forecasts section. Stay ahead of the news in any market with the Elliott Wave principle.
