Home USDCAD Could Look for a Support This Week at Trend-line

USDCAD Could Look for a Support This Week at Trend-line

The Canadian dollar has been one of the best performers last week and it gained strongly against the USD.

We can see a sharp fall on USDCAD back to 1.0050 area, but still only into a third leg of decline from 1.0340, which is a a structure of a contra-trend movements. Notice that the pair is also still above the rising trend-line from 2012 low and also above 0.9930 critical level of wave X).

With that said, it would be too soon to call end of a bullish period and look lower USDCAD; we still see current pull-back as wave B) that is part of a complex double zig-zag in wave (E).

USDCAD Elliott Wave Technical Analysis for currency trading May 7 2013


An impulsive reversal higher in the next week, back to 1.0200 would suggest another leg higher, this time to 1.0440 trend-line resistance where we would be looking for an end of a corrective wave (E) of X triangle as shown on the weekly chart.

Only a sharp fall through 0.9930 would require a different outlook (ALT on the chart).

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Gregor Horvat

Gregor Horvat

Grega Horvat Grega is based in Slovenia and has been involved in markets since 2003. He is the owner of Ew-Forecast, but before that he was working for Capital Forex Group and TheLFB.com. His feature articles have been published on FXstreet.com, Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com, etc. He recently won the award on FXStreet.com for Best Forex Analysis in 2016. At Ew-forecast he helps clients and educates them about the Elliott wave principle and how to label and track unfolding patterns in real time. His approach to the markets is mainly technical. He uses a lot of different methods when analyzing the markets such as candlestick patterns, MA, technical indicators etc. His specialty, however, is Elliott Wave Theory which could be very helpful especially if you know how to use it in combination with other tools/indicators. EW-Forecast To be involved in the market effectively, you need the right guidance and resources, and our team can help you to achieve that. Our team is providing advanced informations about Elliott Wave theory in real time. The Elliott Wave Principle gives you a method for identifying the behavior of the markets and at what points the market is most likely to turn. We help new traders who are interested in Elliott Wave theory to understand it correctly. We are doing our best to explain our views as simple as possible with educational goal, because knowledge itself is power!