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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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