USDCAD rallied as expected but more than expectation. The rally shows that the bullish trend may have resumed. Our preferred count has been adjusted to with price movement. The following updates you on what could happen in the coming days and weeks based on 24 April USDCAD daily Elliott wave analysis.
24 April, AtoZForex – The Loonie rallied as Oil prices dipped last week. The rally may still resume as price tries to complete a diagonal structure. In the last update on USDCAD, we expected a rally toward 1.337 region before the bearish move continues. Price rallied faster and stronger than expected. The chart below was used in the last update.
The chart above labels the decline from 1.345 as an impulse wave which ended above 1.32. The rally that followed is expected to be corrective. 1.337x has been marked as a price reversal region. If the rally does not take 1.345, there are good chances that price will resume bearish and break below 1.3. The bullish corrective pattern emerging is a zigzag pattern.
The last update forecast bearish continuation. Price is always needed to validate or invalidate our view. The rally was expected to be corrective. The chart below shows an impulse wave instead and how we adjusted to the new price action with the Elliott wave theory.
24 April USDCAD daily Elliott wave analysis: what next?
The chart above shows that the move from 9th May to 13th April is quite corrective – a zigzag pattern. The impulsive rally from wave (C) shows price is ready to resume upside probably. At 1.353, a resistance, an intraday dip could be seen to 1.334-1.3375 before a strong rally above 1.353. The corrective dip is expected to stay above 1.322 for this view to be valid. A dip below would put the bears on the driver seat and the bulls may lose out this time around.
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