The USDCAD Elliott Wave Analysis for the daily chart reflects a bearish trend, pointing to a downward movement for the U.S. Dollar against the Canadian Dollar. Classified as impulsive, this trend highlights a strong directional force pushing the market lower. The current structure under analysis is Navy Blue Wave 3, an integral phase of the ongoing bearish movement.

At present, the market is positioned in Gray Wave 3, which forms part of a broader bearish trend within Navy Blue Wave 3. This suggests that the bearish momentum is gaining traction, as the market advances further into the wave sequence. Navy Blue Wave 3, which has just commenced, is anticipated to extend the downward trend following the completion of the corrective Navy Blue Wave 2.

Navy Blue Wave 2 is deemed complete, allowing for the full progression of Navy Blue Wave 3. In the Elliott Wave theory, Wave 3 in an impulsive sequence typically marks the strongest and longest phase, implying that the current bearish trend could accelerate as Wave 3 continues its development.

A critical level to observe is 1.35931, which serves as the Wave Cancel Invalidation Point. Should the market rise above this level, the present Elliott Wave analysis would be invalid, necessitating a reassessment of the bearish outlook. This invalidation point is crucial for traders, as remaining below it confirms the continuation of the bearish trend.

Summary

The USDCAD Elliott Wave analysis suggests a strong bearish trend, driven by Navy Blue Wave 3, indicating further declines for the U.S. Dollar against the Canadian Dollar. Traders should monitor the 1.35931 invalidation level, as any movement above this threshold would invalidate the current analysis. The bearish trend holds as long as the price remains below this level.

U.S. Dollar / Canadian Dollar (USDCAD) 4 Hour Chart.

USD/CAD Elliott Wave technical analysis

Function: Bearish Trend.

Mode: Impulsive.

Structure: Orange Wave 3.

Position: Navy Blue Wave 3.

Direction (next lower degrees): Orange Wave 3 (Started).

Details: Orange Wave 2 appears completed, and Orange Wave 3 is now in play.

Wave cancel invalid level: 1.35931.

The USDCAD Elliott Wave Analysis for the 4-hour chart reveals a bearish trend, indicating a potential decline for the U.S. Dollar against the Canadian Dollar. The mode is impulsive, showing a strong directional movement in line with the prevailing trend. The structure under analysis is Orange Wave 3, which plays a critical role in the ongoing bearish movement.

Regarding positioning, the market is within Navy Blue Wave 3, which is part of a broader bearish trend. The focus is on Orange Wave 3, which has recently begun following the completion of Orange Wave 2. The corrective Orange Wave 2 is now considered complete, allowing for the continuation of the downward movement in Orange Wave 3.

The next expected development is the full extension of Orange Wave 3. Within the Elliott Wave framework, Wave 3 in an impulsive sequence typically represents the strongest and most pronounced wave, suggesting that the bearish trend could intensify. This implies there may be more downside potential for the U.S. Dollar relative to the Canadian Dollar in the short term.

A key level to observe is 1.35931, which serves as the Wave Cancel Invalidation Level. If the price surpasses this level, the current Elliott Wave analysis would be invalid, prompting a reassessment of the trend. This level is crucial for traders as it indicates whether the bearish trend remains intact.

Summary

The USDCAD Elliott Wave analysis signals a continued bearish trend, with Orange Wave 3 driving further declines. Traders should keep a close watch on the 1.35931 invalidation level, as any movement above this point could indicate a shift in the market’s direction. Until then, the bearish trend is likely to persist.

USD/CAD Elliott Wave technical analysis [Video]

Author

Peter Mathers

TradingLounge

Peter Mathers started actively trading in 1982. He began his career at Hoei and Shoin, a Japanese futures trading company.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.