Elliott Wave Analysis: USDCAD Has An Unfinished Five-Wave Drop

Hello traders!

USDCAD came nicely down on the 4-hour chart with extended and strong drop from 1.2774, which has characteristics of wave 3 rather than C as the pair also moves very close to the typical 161.8% extension level. As such, we are aware of more weakness after the current consolidation that looks like wave 4, which can be a triangle or maybe more complex recovery to 1.2450 - 1.2500 for 38,2% Fibo. retracement, but in either case, we think that sooner or later bears for wave 5 will resume towards 1.22 - 1.21 area.

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