USDCAD is preparing for the bullish move we have waited for. Will there be a genuine bullish move soon? What levels do we watch out for bullish confirmation? These are questions the 17 February USDCAD Elliott wave forecast answers.
17 February, AtoZForex -In the last update, we consolidated on the emerging leading diagonal pattern we forecast in the previous update. Leading diagonals, just like ending diagonals, are followed by volatile breakouts. In the case of a leading diagonal, the resultant move is a correction which can sometimes be deep. Sometimes we have 'truncations' in diagonal patterns. Are we going to see a 'truncation' leading diagonal in USDCAD?
The chart below was used in the last update.
Hourly USDCAD Elliott wave analysis (click to zoom)
Technically a break above 1.3132 will hamper the bearish drive. In as much as price stays below 1.3124, continuous dip toward 1.29 can’t be neglected.
Price was obviously in the last phase of the pattern. A 5-wave last leg was expected at 1.29. At 1.29, we would have a 'perfect' diagonal formation. If the diagonal completes above 1.29, then we have a 'truncation' . Also, if price breaks below without invalidating the diagonal rules, we will have a 'throw under'. All these have been seen happened on price charts. Price continued downward for the sub-wave v of the diagonal 5th wave. As we mentioned in the last update, a break above 1.3132 could mean a truncated leading diagonal.
17 February USDCAD Elliott wave forecast: truncated diagonal?
The chart below shows the truncated leading pattern if price rallies with good momentum.
Hourly USDCAD Elliott wave analysis (click to zoom)
The leading diagonal will be truncated if price breaks above 1.3127. The breakout should be sharp. A bullish reversal will be seen to 1.34 price levels before the bearish move continues. Conversely, if price remains below 1.3127, there is a good chance of it falling further toward 1.29. If the bearish trend resumes stronger , there could be a 'throw under' below 1.29. 1.3127 and 1.29 are important level as far as USDCAD is concerned.
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