Elliottwave Forecast Blog | Elliott Wave Analysis: Impulse Move Suggests More Downside in USDCAD | Talkmarkets
ElliotWave Forecast
Contributor's Links: Elliottwave Forecast

At Elliottwave-Forecast, we offer 24 hour coverage of 52 instruments from Monday – Friday using Elliott Wave Theory as primary tools of analysis. We provide Elliott Wave chart in 4 different time frames, up to 4 times a day update in 1 hour chart, two live sessions by our expert analysts, ... more

Elliott Wave Analysis: Impulse Move Suggests More Downside in USDCAD

Date: Wednesday, January 9, 2019 3:51 PM EST

Short term Elliott Wave view in USDCAD shows that the decline from 12/31/2018 high (1.3669) is unfolding as a 5 waves impulse Elliott Wave structure. Down from 1.3669, Wave 1 ended at 1.3563, wave 2 ended at 1.3662, wave 3 ended at 1.3263, and wave 4 ended at 1.3323. We can see a momentum divergence with momentum showing a higher low while price showing a lower low.

This suggests that wave 5 is near complete and we can soon see a 3 waves rally to correct the decline from 12/31/2018 high. To get an estimate on how far the bounce can go, it should ideally end around 50 - 61.8% fibonacci retracement of the decline from 1.3669. This however is more of a guideline and not a rule. The actual rally can be deeper or shallower than the 50 - 61.8% retracement guide. The most important level remains to be 1.3669.

As the move lower from 1.3669 is impulsive, the bounce should fail below 1.3669 and give us at least another 5 waves down to end a zigzag Elliott Wave structure at minimum. The medium term outlook therefore favors further downside although short term we may see a bounce soon.

USDCAD 1 Hour Asia Elliott Wave Chart

Elliott Wave View suggests impulsive move in USDCAD

 

Disclaimer: This and other personal blog posts are not reviewed, monitored or endorsed by TalkMarkets. The content is solely the view of the author and TalkMarkets is not responsible for the content of this post in any way. Our curated content which is handpicked by our editorial team may be viewed here.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.