More gains are expected

November 17, 2015 11:12 AM

USD/CAD has turned sharply down at the start of October, but won't stay that way for long.

Notice that price found a support in October, at the rising trendline connected from 1.1920. Since then pair has been progressing within uptrend which now looks like a wave 5) that is headed back to the highs of 2015.


USD/CAD, Daily

On the lower time frame, USD/CAD moved again to a new swing high after recent consolidation down to 1.3225 (which we labeled as wave (ii)). Current leg up can be just a start of another strong bullish run that can lift prices even up to 1.3500 this month as we see big wave 3 in play from 1.3038 low.

If we are correct, then a sharp break higher must occur soon, while 1.3224 support holds. Move beyond that level will indicate that blue wave (ii) is still underway. We still think that sooner or later price will break to new highs of 2015.


USD/CAD, 4hr

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/