USDCAD, long term analysis
Updated
In terms of long term trend, USDCAD appears bullish at the moment and in the 4th wave, which could still go lower before we see the move to the upside. Wave 1 retraced to a perfect 78.6% level at wave 2, then turned into an extended wave 3 (with a 5-3-5 formation). If price action retraces in the wave 1 territory below the 38.2% fib at 1.2949, then the wave count is wrong. Otherwise, with fundamentals as they are, the target is the 1.38 area where wave 5 is complete.
The chart overall is very respective of Elliott wave, following the fib retracements of waves very well.
Andrews pitchfork from the low of the sell off, shows the price action moving and respecting channel levels, also in line with the target.
With OPEC recently saying they will up the production levels, oil prices took a hit and are overall ranging, since Iran sanctions are still on the table. CAD being highly dependant on oil prices will follow its direction.
Long term projection for the pair is long, but short term trading can be both selling and buying on swings. Next long term entrance is at the 1.34 level of resistance and high of wave 3.
Happy Trading!
The chart overall is very respective of Elliott wave, following the fib retracements of waves very well.
Andrews pitchfork from the low of the sell off, shows the price action moving and respecting channel levels, also in line with the target.
With OPEC recently saying they will up the production levels, oil prices took a hit and are overall ranging, since Iran sanctions are still on the table. CAD being highly dependant on oil prices will follow its direction.
Long term projection for the pair is long, but short term trading can be both selling and buying on swings. Next long term entrance is at the 1.34 level of resistance and high of wave 3.
Happy Trading!
Note
Note
C wave of the 4th wave working out perfectly so far and stays within the Andrew's pitchfork.Note
Note
Wave 4 should be done, waiting for the break above today's high and 50 SMA.
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