Elliott Wave View: USDCAD Looking For More Upside

Technical analysis of Forex market

Short-term Elliott wave view in USDCAD suggests that the cycle from 01 Jun 2021 low is unfolding as a double correction. The structure remains incomplete favoring more upside extension. Up from that low, the pair has ended the first leg in wave ((W)) at 1.29492 high. Then wave ((X)) pullback ended at 1.24903 low and the pair continued higher.

Up from wave ((X)), wave ((Y)) remains in progress in lesser degree 7 swing structures (W), (X), and (Y). Pair is currently rallying in 5 waves impulse which should end wave A of (W). Up from wave ((X)) low at 1.249, wave (i) of ((i)) ended at 1.2543. Pullback in wave (ii) of ((i)) ended at 1.2499 low. Wave (iii) of ((i)) ended at 1.2707 high. Then wave (iv) of ((i)) drop finished at 1.2646 and rally ended at 1.2763.

Near-term, as far as the rally remains below wave ((i)) high at 1.2763, expect USDCAD to extend lower as (a), (b) and (c) correction and complete wave ((ii)). Wave (a) of ((ii)) already ended at 1.2648 and currently we are developing wave (b) of ((ii)) in 3 swings higher. After wave (b) is completed, we expect one more swing lower to complete wave (c) of ((ii)). Afterwards, the rally should continue within the wave A of (W) of ((Y)). Short term, only a break of wave ((i)) high will confirm the wave ((ii)) is done. Near term, as far as pivot at 1.249 low remains intact, expect pullback to find support in 3, 7, or 11 swing for more upside.

USDCAD 30 Minutes Elliott Wave Chart