USDCAD is about to complete a zigzag corrective pattern which might be followed by a move upside. The following 27 July USDCAD Elliott wave analysis shows what next is expected.
USDCAD made a small move upside yesterday after a big bearish week. The week is expected to end bearish as price takes the last leg to complete a zigzag pattern from 1.3385 top. In the last update, the dip was expected to hit 1.29. In the new update, we would look at a wave pattern which might complete before 1.29. This means we might see a a bullish correction before price returns downside. The chart below was used in the last update.
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.
27 July USDCAD Elliott wave analysis: what next?
We might see a bounce at 1.295 after the completion of a zigzag pattern from 1.3385. The correction from 1.3385 is expected to be deeper with 1.25 as the target. After being rejected at 1.295, we might see a corrective move upside before price gets back toward 1.27 or below to complete a double zigzag pattern. Unless a sudden break above wave (b), the bearish correction from 1.3385 should continue but me might see the bulls taking control temporarily at 1.295. Watch out for it and stay tuned for the next update.
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