USDCAD resumed bearish today but getting close to a technical reversal zone. Will price rally soon? The following 30 July USDCAD Elliott wave analysis looks at what could happen next.
In the last two updates on USDCAD, we used two different technical analysis methods. The Elliott wave theory and harmonic pattern analysis. According to the harmonic pattern analysis, a bullish Gartley pattern is about to end at 1.2968-1.3. At the same zone, an Elliott wave zigzag pattern could also end which means that USDCAD could rally in the coming days. Though the rally might not result in a change of trend according to the last Elliott wave analysis update, but a significant rally is much likely going to happen. The chart below was used in the last update.
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.
30 July USDCAD Elliott wave analysis: what next?
Price is entering into the pattern reversal zone. The move is coming fast, so it’s important to wait for a significant bounce. Price could dig far deeper to 1.29 after breaking below 1.295 to invalidate our forecast. But, if price bounces off the reversal zone, we might see it rally back to 1.31-1.315 or maybe higher. Stay tuned for the next update.
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