USDCAD is back above 1.3 after being unable to break below 1.295. The following 2 August USDCAD Elliott wave analysis looks at what could happen next?
USDCAD has completed an important price reversal pattern at an important zone. At the end of such price structure, it often moves in the opposite direction for a correction or complete reversal. In the last update, we had USDCAD completed a corrective zigzag pattern from 1.3385. This pattern also had a diagonal mouth which required a breakout. The chart below was used in the last update. It seems a breakout has happened. Will price advance further?
From wave (b), we have a bearish impulse wave to complete wave (c). Just at the zone, price is making an ending diagonal mouth which further supports a big bullish move. The extent of this rally won’t be much known now until price gives more information. If the correction from 1.3385 would continue, we should see a corrective rally up to 1.32-1.33. If the rally is impulsive, we might see price above 1.3385 after a few weeks. A break below 1.2975 would invalidate this forecast and probably would see price digging further.
2 August USDCAD Elliott wave analysis: what next?
From 1.2975, there has been a move upside to to make the necessary breakout expected. Price is expected to rally up to 1.31 and 1.32. If price advance further as expected, we would look at which of the bullish scenarios will play out. This forecast will fail if price dips below 1.2975. If that happens, price will be ready to touch the 1.29 handle. Stay tuned for the next update.
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