Fibonacci and Elliott Wave meet as this currency plows higher

The Canadian dollar is moving nicely to the upside against the U.S. dollar (FOREX:USDCAD), which had been technically expected after a consolidation around the 1.0600 mark where a triangle had been placed in wave 4. Price is now trading up in wave 5 and is forming an extended structure toward the 1.10 region where we see the 61.8% Fibonacci extension level of wave 1 measured from the wave 2 low. From that psychological level we will be looking for a minimum three wave retracement that may begin at the end of January.

USD/CAD Daily Elliott Wave Analysis

USD/CAD 4-hour

USD/CAD is moving slow and sideways above the 1.0900 level, which we think represents a correction within a larger uptrend. We adjusted the wave count and see current price action as a triangle in progress placed in wave (iv), which means that new highs should follow in this week. Ideally we will see a spike above the 1.10 psychological level and a turning point to the downside.

USD/CAD 4-hour Elliott Wave Analysis

USD/CAD 1-hour

Markets are showing some nice patterns this morning. USD seems to be turning bullish across the board. Commodity currencies seems to be the weakest at the moment. I see all five needed subwaves; a)-b)-c)-d)-e) in wave (iv) so looks like higher levels are in the cards. Triangle measurement is pointing toward 1.1025.

USDCAD 1-hour Elliott Wave Analysis

About the Author

Gregor Horvat, based in Slovenia, has been in the forex markets since 2003. He is a technical analyst and individual trader who has worked for Capital Forex Group and TheLFB.com. He also is founder of forex services on www.ew-forecast.com. EW-Forecast.com provides technical analysis of the financial markets, highlighting behavioral patterns based on the Elliott Wave Principle (EWP). Website: http://www.ew-forecast.com/

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