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: Navy Blue Wave 3
• Position: Gray Wave 1
• Direction Next Lower Degrees: Navy Blue Wave 3 (Started)
• Wave Cancel Invalid Level: 1.47952

Analysis Overview:

The USDCAD Elliott Wave Analysis for the day chart highlights a bearish trend, with the market currently in impulsive mode. The structure is classified as Navy Blue Wave 3, which is part of a larger downward movement within Gray Wave 1. This suggests that the market is in a strong downward phase, characteristic of an impulsive wave structure.

The next anticipated movement is the continuation of Navy Blue Wave 3, which has already begun and is expected to push the market further downward.

Key Market Insights:

• Navy Blue Wave 2 appears to have concluded, and the market is now progressing into Navy Blue Wave 3.
• This wave is expected to show strong downward momentum, aligning with the impulsive nature of the trend.
• Traders should monitor Navy Blue Wave 3, as its completion will signal a potential transition to a new market phase.
• The completion of Navy Blue Wave 3 will provide valuable insights into timing and direction for the next lower-degree wave.

Key Levels to Watch:

• Wave Cancellation Invalid Level: 1.47952
  • If the price rises above this level, it would invalidate the current wave count, necessitating a reassessment of the market structure.
  • This level serves as key resistance, and a break above could indicate a trend shift or pattern adjustment.

Conclusion:

The USDCAD remains in a bearish trend, with Navy Blue Wave 3 in play following the completion of Navy Blue Wave 2. This impulsive movement is a part of Gray Wave 1, and the next significant move is expected to be the continuation of Navy Blue Wave 3.

Traders should closely monitor Navy Blue Wave 3, as it provides critical insights into the market’s direction. This analysis underscores the importance of wave structures in forecasting market movements and aligning trading strategies accordingly.

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

USDCAD Elliott Wave Technical Analysis

• Function: Bearish Trend
• Mode: Impulsive
• Structure: Orange Wave 1
• Position: Navy Blue Wave 3
• Direction Next Higher Degrees: Orange Wave 2
• Wave Cancel Invalid Level: 1.47952

Analysis Overview:

The USDCAD Elliott Wave Analysis for the 4-hour chart highlights a bearish trend, with the market currently in impulsive mode. The structure is identified as Orange Wave 1, which is part of a larger downward movement within Navy Blue Wave 3. This suggests that the market is in a strong downward phase, characteristic of an impulsive wave structure.

The next anticipated movement is Orange Wave 2, which is expected to follow the completion of Orange Wave 1.

Key Market Insights:

• Navy Blue Wave 2 appears to have concluded, and the market is now progressing into Orange Wave 1 of 3.
• This wave is expected to continue its downward momentum, aligning with the impulsive trend.
• Traders should monitor the development of Orange Wave 1, as its completion will signal the potential start of Orange Wave 2, a corrective phase that could introduce temporary pullbacks or consolidation before the downward trend resumes.

Key Levels to Watch:

• Wave Cancellation Invalid Level: 1.47952
  • If the price rises above this level, it would invalidate the current wave count, requiring a reassessment of the market structure.
  • This level serves as key resistance, and a break above it could indicate a trend shift or pattern adjustment.

Conclusion:

The USD/CAD remains in a bearish trend, with Orange Wave 1 in play following the completion of Navy Blue Wave 2. This impulsive movement is part of Navy Blue Wave 3, and the next significant move is anticipated to be Orange Wave 2.

Traders should closely monitor the completion of Orange Wave 1, as it provides critical insights into the timing and direction of the next higher-degree wave. This analysis emphasizes the importance of wave structures in predicting market trends and aligning trading strategies effectively.

Technical Analyst : Malik Awais

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