USDCAD has resumed bearish and touched 1.31 handle. The following 25 July USDCAD Elliott wave analysis looks at what could happen next based on Elliott wave theory.
USDCAD touched 1.31 just at the start of the New York session. It was expected to be, after last week bearish move continuation. In the last update, we expected price to stay below 1.319 and plunge further as we count an impulsive second leg of the correction from 1.3385. The chart below was used in the last update.
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.
25 July USDCAD Elliott wave analysis: what next?
With the break below 1.311, wave 1-2 (circled) are confirmed. The 3rd wave which should be stronger than wave 1 is expected to dip to 1.29. The long term bearish target remains at 1.25. In the long term, the dip from 1.3385 is corrective and should reach 1.25 at least. We will look at how the current bearish move continues and make new updates. Stay tuned.
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