USDCAD rallied yesterday as a correction of last week fast drop. The following 24 July USDCAD Elliott wave analysis looks at what could happen next based on Elliott wave theory.
USDCAD dropped massively last week to continue the bearish run as expected. Yesterday, price made a move upside into the territory the double zigzag larger correction. Price is expected to continue downside to 1.29 first and 1.25 later. In the last update, the chart below was used.
Price stayed below 1.329 and broke below 1.323 to resume the downward move. Price is now at the entrance of the 1.3122-1.2070 support with an emerging sideway triangle pattern. It’s expected to go deeper to 1.3100 or 1.3070-1.3060 before starting a bullish correction. We would be counting a 5-wave dip. The 1st wave is close to completion.
With the rally that happened yesterday, we have to admit that wave 1 (circled) has ended at 1.311 and yesterday’s rally was wave 2 (circled). This means price has a high chance to continuing the bearish run as the chart below shows.
24 July USDCAD Elliott wave analysis: what next?
The price zone for the completion of the 2nd wave of this degree was marked at 1.32-1.3224. Price is looking short of that at 1.319. Just 10 pips below the zone. The next level to take out is 1.311. Once price breaks below 1.311, we should expect it dip further to 1.295 and then see what happens next. The ultimate bearish target remains at 1.25. Stay tuned for the next update.
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