17 July USDCAD Elliott wave analysis

USDCAD was bearish yesterday with a move close to 1.31. What should we expect next? The following 17 July USDCAD Elliott wave analysis looks into USDCAD based on Elliott wave theory.

The price of USDCAD dropped below 1.3150 yesterday and moved close to 1.31. The move followed after price was resisted at the 1.3188-1.322 Fib-resistance zone. Despite yesterday’s bearish move, price lacked the required momentum to push far below thereby emerging into a corrective pattern. In this new update, we look at the possibility of a higher bullish correction which suggests further rallies would happen in the coming days. The following chart was used in the last update.

Price stays below the zone as it tries to resume the bearish move.It’s now heading to the 1.3070-1.3122 support zone. A break below the zone would confirm the continuation of the bearish move down to 1.3. The bearish target remains 1.25 but the move, if it happens, might no be very direct. The forecast above would only be invalid if price returns to break above 1.322. If that happens, we might probably going to see a much deeper bullish correction close to 1.33.

17 July USDCAD Elliott wave analysis: what next?

The drop from 1.3225 looks corrective thereby making a case for a more complex bullish correction. There is a possibility of a double zigzag bullish pattern if price breaks above the intraday channel shown in the chart above. If the channel is broken upside, we should see price heading above 1.3225 up to 1.33. But, if there is no significant bullish breakout, we might see price coming back to 1.3060 and the last forecast should play out. Stay tuned for the next update.

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