USDCAD is making a pretty strong rise after the Bank of Canada lowered rates by 25 basis points as expected last week. The price is now testing the major trend line resistance of this triangle on the daily chart, and we are wondering if we can see a breakout, which is certainly possible in a risk-off environment, with lower stocks and alos lower crude oil. Looking at the 4-hour time frame of USDCAD, there's even a chance that the rise from July 11th is an ongoing impulse, and that the current pause down from 1.3845 resistance is wave four, which will eventually push the price higher later this week, through resistance and into wave 5.
A daily close above 1.39 or so, will likely put much more upside pressure on the pair, as a major breakout could then be happening on the daily time frame.
Get Full Access To Our Premium Elliott Wave Analysis For 14 Days. Click here.
By using Wavetraders website, any services, products, and content contained here, you agree that use of our service is entirely at your own risk. You understand that there is a very high degree of risk involved in trading on the markets. We assume no responsibility or liability for your trading and investment results. The charts, and all articles published on www.wavetraders.com are provided for informational and educational purposes only!
By using the information and services of www.ew-forecast.com you assume full responsibility for any and all gains and losses, financial, emotional or otherwise, experienced, suffered or incurred by you.
Recommended Content
Editors’ Picks
EUR/USD tuns south toward 1.0800 amid US Dollar rebound
EUR/USD has turned back in negative territory, eyeing 1.0800 in the European session on Monday. The US Dollar stages a decent comeback, as risk sentiment sours amid Middle East tensions and the markets' nervousness ahead of a critical central banks' week.
GBP/USD tumbles to test 1.2800 as US Dollar finds fresh demand
GBP/USD has come under decent selling pressure, testing 1.2800 in European trading on Monday. The pair is hit by resurgent US Dollar demand, as risk sentiment dwindles, with traders turning cautious ahead of the key Fed and BoE policy decisions due later in the week.
Gold price recovery stalls near $2,400
Gold price is defending minor bids in the European session on Monday, having faced rejection above $2,400. Gold price meets renewed selling pressure from a broad US Dollar upswing but the downside appears cushioned amid escalating Middle East tensions.
Ripple update: What to expect from XRP and Ripple lawsuit this week
Ripple (XRP) extended gains by nearly 2% early on Sunday. XRP sustained above the psychological price level of $0.60 amidst the optimism of Donald Trump’s speech at the Bitcoin conference, and BTC’s recent gains.
Week ahead: Central banks, earnings, economic data
The Fed, the BOE and the BOJ all meet this week, while Amazon, Apple and Microsoft report Q2 earnings and at the end of the week the US will release its latest labour market report.