USDCAD started a bearish journey last week after peaking at 1.3385. Will price drop further this week? The following 2 July USDCAD Elliott wave analysis looks at what we should expect next.
USDCAD is now trading below 1.32 after rejecting 1.3285 following the completion of a technical reversal pattern. From our long term forecast, the expected drop should be corrective – a Zigzag pattern is expected. Since the drop from 1.3385, it’s important to see an impulse wave pattern leading the way. In this update, we will start the wave analysis of the drop from 1.3385 to know if price would go back to 1.3385 and break it or would go deep into the long term diagonal pattern and break below it toward 1.25. In the last update, we had the chart below.
Price is much likely to make the first drop to 1.285-90 to complete impulsive wave a (circled) of a possible corrective Zigzag. The ultimate bearish target is set at 1.25. Only a break above 1.3385 would likely invalidate this forecast There are important events coming today and next week to trigger where next USDCAD could be heading.
2 July USDCAD Elliott wave analysis: what next?
The fast impulse wave drop from 1.3385 to 1.3130 is the first indication that USDCAD might continue downside in the coming days. As the chart above shows, price has started a slow correction upside which could reach 1.32223-1.3258 Fib-ratio retracement levels – Will the correction go higher? It’s likely but until a break above 1.3385, the odds still favor more price drops to 1.25. Stay tuned for the next update.
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