USD/CAD : A Completed Three Wave Rally From 1.0180 Is

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USDCAD is looking bearish after a turning point from 1.0418 where a three wave rally from 1.0180 was most likely completed with a corrective retracement labeled as (a)-(b)-(c).

Notice that the pair already took out the lower trendline of a corrective channel that usually leads to a continuation of a larger trend.

In our case, the larger trend since early September is down so we expect more weakness in the upcoming days and possibly a revisit of the 1.0180 level, probably next week.

Based on the latest price action from 1.0418 we see prices moving down in a third leg of decline which is ideally wave (iii) that will accelerate to a typical 161.8% Fibonacci target once the lower line of a base channel is taken out. The critical, short-term invalidation level is now at 1.0390.

usdcad 4h Elliott Wave Analysis Technical chart for the Canadian dollar forex trading

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About Author

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!

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