USDCAD Elliott Wave Analysis - Trading Lounge

U.S. Dollar / Canadian Dollar (USDCAD) Day Chart

USDCAD Elliott Wave Technical Analysis

• Function: Bearish Trend
• Mode: Impulsive
• Structure: Orange Wave 3
• Position: Navy Blue Wave 1
• Next Higher Degree Direction: Orange Wave 4
• Invalidation Level: 1.43803

Analysis Details:

The USDCAD daily chart reflects a strong bearish trend with an impulsive wave structure. The market is currently in orange wave 3, following the completion of orange wave 2. This suggests that downward momentum remains strong, and further declines are expected.

At its current position in navy blue wave 1, the broader downtrend is in its early stages. As orange wave 3 progresses, the price is anticipated to continue its downward movement before entering a corrective phase in orange wave 4.

The next higher-degree wave to watch is orange wave 4, which will occur once the current bearish wave completes. This indicates that after the ongoing downward movement, a temporary pullback or consolidation could take place before the overall bearish trend resumes.

The invalidation level for this Elliott Wave structure is 1.43803. If the price moves above this level, the current bearish wave count would need reassessment. However, as long as the price stays below 1.43803, the bearish outlook remains valid, and further downside movement is expected.

Conclusion:

The USDCAD daily chart continues to show a strong bearish trend, with orange wave 3 currently in play. The 1.43803 level serves as a crucial resistance point, confirming the bearish scenario. The next phase in the Elliott Wave sequence will be orange wave 4, which may lead to a short-term upward correction before the overall downtrend resumes.

U.S. Dollar / Canadian Dollar (USDCAD) 4-Hour Chart

USDCAD Elliott Wave Technical Analysis

• Function: Bearish Trend
• Mode: Impulsive
• Structure: Orange Wave 3
• Position: Navy Blue Wave 1
• Next Higher Degree Direction: Orange Wave 4
• Invalidation Level: 1.43803

Analysis Details:

The USDCAD 4-hour chart confirms a strong bearish trend with an impulsive wave structure. The market is currently in orange wave 3, following the completion of orange wave 2. This indicates that downward momentum remains strong, and further declines are expected.

The market is positioned in navy blue wave 1, signaling that the broader downtrend is still in its early stages. As orange wave 3 progresses, the price is expected to continue declining before transitioning into a corrective phase in orange wave 4.

The next higher-degree wave to monitor is orange wave 4, which will emerge after orange wave 3 completes. This suggests that after the ongoing downward movement, a short-term pullback or consolidation may occur before the bearish trend resumes.

The invalidation level for this Elliott Wave structure is 1.43803. If the price rises above this level, the current bearish wave count would need to be reassessed. However, as long as the price remains below 1.43803, the bearish outlook remains valid, and further downside movement is anticipated.

Conclusion:

The USDCAD 4-hour chart maintains a strong bearish trend, with orange wave 3 currently in play. The 1.43803 level serves as a key resistance point, ensuring the bearish scenario remains intact. The next phase in the Elliott Wave sequence will be orange wave 4, which may introduce a temporary upward correction before the downtrend continues.

Technical Analyst: Malik Awais

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