Hello fellow traders. USDCAD has given us another trading opportunity recently. As our members know, we’ve been favoring the long side in USDCAD and buying the dips in 3,7,11 swings. Reason for expecting further rally is incomplete bullish structure the pair is showing in the weekly cycle from the 05.30. low . In this technical blog we’re going to take a quick look at the Elliott Wave charts of USDCAD, published in members area of the website.
USDCAD Elliott Wave 1 Hour Chart 06.28.2022
USDCAD ended 5 waves up in the cycle from the 1.2515 low as wave ((i)) black . Currently we are getting wave ((ii)) black pull back. Correction is unfolding as Elliott Wave Double Three pattern. First leg of the pull back looks like 3 waves structure,then we got 3 waves bounce (x) and now looking for another leg down to have 3 waves in (y) blue leg as well. .
We don’t recommend selling the pair against the main bullish trend. Strategy is buying the dips at the marked blue box zone : 1.28401-1.2729 once it gets reached. As the main trend is bullish we expect buyers to appear at the blue box for 3 waves bounce at least. Once bounce reaches 50 Fibs against the (x) blue high, we will make long position risk free ( put SL at BE).
As our members know, Blue Boxes are no enemy areas , giving us 85% chance to get a bounce.
You can learn more about Elliott Wave Double Three Pattern at our Free Elliott Wave Educational Web Page.
USDCAD Elliott Wave 1 Hour Chart 06.30.2022
Buyers appeared at the Blue Box area and we are getting reaction from there. The rally from the blue box already reached and exceeded 50 fibs against the (x) connector so,we booked partial profits and made trades risk free ( put SL at BE). Pull back ((ii)) is counted completed at 1.2816 low as Elliott Wave Double Three pattern. Now we need to see break of June 17th peak to confirm next leg up is in progress.
Keep in mind that market is dynamic and presented view could have changed in the mean time. You can check most recent charts in the membership area of the site. Best instruments to trade are those having incomplete bullish or bearish swings sequences. We put them in Sequence Report and best among them are shown in the Live Trading Room
Elliott Wave Forecast
Source: https://elliottwave-forecast.com/forex/usdcad-showing-reaction-blue-box/