USD/CAD: Correction Within Uptrend; Can We See 1.0600?

USDCAD is in a pull-back mode from latest high which we think is just another correction within a larger incomplete uptrend.

We are tracking an impulsive structure from 1.0134 that needs to be made by five smaller waves. For now that’s not the case so we think that the current bearish reversal represents a corrective wave 4 that will look for a support around 1.0400-1.0430 region where a previous broken high may become a good support.

At the same zone we can also see a very typical 38.2% Fibonacci retracement level from where we definitely expect to see a bounce. So for now the pair remains in an uptrend as long as 1.0240 is in place, but a push beneath 61.8% retracement would already threaten the bullish view.

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!

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