USDCAD Eyes New High Around 1.3400

Gregor Horvat

On USDCAD we see more upside to come in weeks and months ahead, towards 1.3400 area where pair could accomplish wave C of a big second zigzag that is part of a contra-trend move from 2007 lows. The reason for more upside is latest pullback since March 2015 which looks like a temporary pause within uptrend. Once market will break above the highs from 2008 traders should be aware of a significant trend change, from bullish to bearish mode.

Elliott Wave Analysis – USDCAD Weekly Chart

USDCAD Weekly Chart

On daily chart USDCAD made a deep retracement in the last two months but with corrective personality from the highs, down into 38.2% Fibonacci level where pair found a low, possibly completed fourth wave. That said, despite a strong bearish turn, we see big trend still bullish, so we would not be surprised if pair will continue higher in weeks ahead, especially now when the upper channel line gave way and price overlapped wave A).

Elliott Wave Analysis – USDCAD Daily Chart

USDCAD Daily Chart