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 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
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