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USDCAD: Downward Correction (Elliott Wave Analysis)

USDCAD has turned south last week from around 1.1220 where we see signs of a completed wave (v) of 3 with an ending diagonal formation at the end of an extended move that typically confirms a bearish reversal.

As such, we suspect the pair is now moving down in a corrective black wave 4 that may reach the 1.0940 area that comes in around the 38.2% Fibonacci level near the former wave (iv).

Corrections are three wave patterns, so it looks like pair will stay sideways or bearish  for few more days. We see wave (b) now unfolding with wave (c) yet to come. We would be interested in longs once wave 4 will show us evidence of a completed set-back.

usdcad_feb_07_2014_4h

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!