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

USDCAD Elliott Wave Technical Analysis

• Function: Counter Trend
• Mode: Corrective
• Structure: Navy Blue Wave 2
• Position: Gray Wave 1
• Next Lower Degree: Navy Blue Wave 3
• Wave Cancellation Level: 1.47952

USDCAD Elliott Wave Analysis Overview

The USDCAD Elliott Wave Analysis on the day chart highlights a corrective market structure, indicating that the pair is in a counter-trend phase within Navy Blue Wave 2, part of a larger Gray Wave 1. This setup suggests that the market is undergoing an intermediate correction before continuing the broader trend. The next anticipated move is Navy Blue Wave 3, expected to unfold after the completion of Navy Blue Wave 2.

The previous Navy Blue Wave 1 appears to have concluded, and the market is now forming Navy Blue Wave 2, which is expected to show corrective characteristics—potentially including sideways consolidation or short-term upward movement before transitioning into Navy Blue Wave 3. The completion of Navy Blue Wave 2 is a key turning point for traders, signaling the potential beginning of the next impulsive phase.

Key Trading Considerations

• Critical Price Level to Watch: 1.47952 (Wave Cancellation Level)

  • If USDCAD rises above this level, the current wave count is invalidated, suggesting a reassessment of the market structure.
  • This level serves as resistance, and a breakout above it may indicate a shift in trend or wave pattern.

• Market Implications:

  • Completion of Navy Blue Wave 2 → Signals potential entry for Navy Blue Wave 3, aligning with the broader trend.
  • Corrective Movement Characteristics → Possible sideways consolidation or mild retracement before a stronger move.
  • Wave Structure Awareness → Helps traders anticipate potential market shifts and adjust their strategies accordingly.

Conclusion

The USDCAD market structure currently reflects an ongoing corrective phase, with Navy Blue Wave 2 developing after the completion of Navy Blue Wave 1. This phase is part of Gray Wave 1, with the next anticipated movement being Navy Blue Wave 3. Traders should closely monitor the completion of Navy Blue Wave 2, as it will provide valuable insights into the next directional move.

Understanding Elliott Wave structures is crucial for identifying market turning points and aligning trading strategies with potential price movements. The 1.47952 level remains a key reference point, acting as a wave cancellation threshold that could signal a reassessment of the wave count if breached.

By analyzing wave dynamics and price action, traders can develop a data-driven approach to trading USDCAD within the Elliott Wave framework.

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

USDCAD Elliott Wave Technical Analysis

• Function: Counter Trend
• Mode: Corrective
• Structure: Navy Blue Wave 2
• Position: Gray Wave 1
• Next Lower Degree: Navy Blue Wave 3
• Wave Cancellation Level: 1.47952

USDCAD Elliott Wave Analysis Overview

The USDCAD Elliott Wave Analysis on the 4-hour chart highlights a corrective market structure, indicating a counter-trend phase within Navy Blue Wave 2, which is part of a larger corrective pattern within Gray Wave 1. This suggests that the market is undergoing an intermediate correction before resuming the broader trend. The next expected move is Navy Blue Wave 3, anticipated to develop once Navy Blue Wave 2 is completed.

The previous Navy Blue Wave 1 appears to have concluded, and the market is now forming Navy Blue Wave 2, which is expected to show corrective characteristics—potentially involving sideways or short-term upward movements before transitioning into Navy Blue Wave 3. The completion of Navy Blue Wave 2 is a key pivot point, signaling the potential beginning of the next impulsive wave.

Key Trading Considerations

• Critical Price Level to Watch: 1.47952 (Wave Cancellation Level)

  • If USDCAD rises above this level, the current wave count is invalidated, requiring a reassessment of the market structure.
  • This level serves as resistance, and a breakout above it may indicate a shift in trend or wave pattern.

• Market Implications:

  • Completion of Navy Blue Wave 2 → Signals potential entry for Navy Blue Wave 3, aligning with the broader trend.
  • Corrective Movement Characteristics → Possible sideways consolidation or mild retracement before a stronger move.
  • Wave Structure Awareness → Helps traders anticipate potential market shifts and adjust their strategies accordingly.

Conclusion

The USDCAD market structure currently reflects an ongoing corrective phase, with Navy Blue Wave 2 developing after the completion of Navy Blue Wave 1. This phase is part of Gray Wave 1, with the next anticipated movement being Navy Blue Wave 3. Traders should closely monitor the completion of Navy Blue Wave 2, as it will provide valuable insights into the next directional move.

Understanding Elliott Wave structures is essential for identifying market turning points and aligning trading strategies with potential price movements. The 1.47952 level remains a key reference point, serving as a wave cancellation threshold that could indicate a reassessment of the wave count if breached.

By analyzing wave dynamics and price action, traders can develop a data-driven approach to trading USDCAD within the Elliott Wave framework.

Technical Analyst: Malik Awais

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