Elliott Wave Analysis: Crude OIL And USDCAD

Gregor Horvat

Crude oil spiked up to 52.50 area where bears sent price back below 51.00, so it seems like energy is still trapped in a corrective formation. Based on latest substructure we are tracking a flat correction, currently with sub wave c of 2 that can decline even to 49-50 area from where uptrend will be expected to resume this week.

Crude Oil Hourly Chart

Crude Oil Hourly Chart

USDCAD fell to a new low yesterday as expected, which we see it now as red wave v), final leg within a blue wave three that is headed down to around 1.3170 region from where we will track a new bounce up into wave four of a higher degree which can be nice for potential shorts this week.

USDCAD Hourly Chart

USDCAD Hourly Chart

A Flat is a three-wave pattern labelled A-B-C that generally moves sideways. It is corrective, counter-trend and is a very common Elliott pattern.

Basic Flat Pattern

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Source: www.ew-forecast.com

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