Several Elliott Wave Steps Ahead of USDCAD
<p>It’s been another week USDCAD bulls would like to forget. Currently below 1.3130, the pair is down by over 150 pips since the market opened on Monday. Earlier today, it actually dipped below the 1.3100 mark. Higher oil prices and lower-than-expected <a href="https://www.reuters.com/markets/global-markets-wrapup-1-2023-07-12/" target="_blank" rel="noreferrer noopener">inflation in June</a> seem like the logical explanations for the sharp drop in the US dollar against the Loonie.</p>
<p>While we are firm believers in studying and understanding the past, predicting the future is immensely more satisfying. In fact, we think the two are inseparable. One cannot hope to do the latter without having done the former first. In the case of USDCAD, <strong>studying the path the pair had already taken helped us anticipate its next several steps.</strong></p>
<p><em>Similar Elliott Wave setups occur in the crypto, commodity and stock markets, as well. Our <a href="https://ewminteractive.com/courses/course/elliott-wave-perspective-video-course/" target="_blank" rel="noreferrer noopener">Elliott Wave Video Course</a> can teach you how to recognize them yourself!</em></p>
<figure><a href="https://ewminteractive.com/wp-content/uploads/2023/07/USDCAD-June-26th.png"><img decoding="async" width="1104" height="918" src="https://ewminteractive.com/wp-content/uploads/2023/07/USDCAD-June-26th.png" alt="USDCAD June 26th, 2023, Elliott Wave analysis" class="wp-image-25542" srcset="https://ewminteractive.com/wp-content/uploads/2023/07/USDCAD-June-26th.png 1104w, https://ewminteractive.com/wp-content/uploads/2023/07/USDCAD-June-26th-842×700.png 842w, https://ewminteractive.com/wp-content/uploads/2023/07/USDCAD-June-26th-768×639.png 768w, https://ewminteractive.com/wp-content/uploads/2023/07/USDCAD-June-26th-600×499.png 600w" sizes="(max-width: 1104px) 100vw, 1104px" /></a></figure>
<p>The chart above <a href="https://ewminteractive.com/elliott-wave-analysis-usdcad-june-26th-2023" target="_blank" rel="noreferrer noopener">was shared with</a> our <a href="https://ewminteractive.com/elliott-wave-pro/" target="_blank" rel="noreferrer noopener">Elliott Wave Pro</a> subscribers before the market opened <strong>on June 26th</strong>. It revealed that the decline from 1.3655, which Elliott Wave analysis also <a href="https://ewminteractive.com/predicting-usdcad-selloff-month-earlier" target="_blank" rel="noreferrer noopener">happened to put us ahead of</a>, looked like an almost complete <a href="https://ewminteractive.com/elliott-wave-patterns" target="_blank" rel="noreferrer noopener">five-wave impulse</a>. Labeled i-ii-iii-iv-v, the pattern indicated that once wave ‘v’ was over, a three-wave recovery can be expected before the downtrend can resume.</p>
<p>This wasn’t some random opinion of ours. It’s just a basic <a href="https://ewminteractive.com/elliott-wave-principle-infographics" target="_blank" rel="noreferrer noopener">Elliott Wave</a> rule, that states that <strong>a three-wave correction follows every impulse before the trend can continue</strong>. And while it is easy to explain things after the fact, in order to make money traders need to actually predict what would happen.</p>
<figure><a href="https://ewminteractive.com/wp-content/uploads/2023/07/usdcad-every-step.png"><img decoding="async" loading="lazy" width="1104" height="918" src="https://ewminteractive.com/wp-content/uploads/2023/07/usdcad-every-step.png" alt="" class="wp-image-25543" srcset="https://ewminteractive.com/wp-content/uploads/2023/07/usdcad-every-step.png 1104w, https://ewminteractive.com/wp-content/uploads/2023/07/usdcad-every-step-842×700.png 842w, https://ewminteractive.com/wp-content/uploads/2023/07/usdcad-every-step-768×639.png 768w, https://ewminteractive.com/wp-content/uploads/2023/07/usdcad-every-step-600×499.png 600w" sizes="(max-width: 1104px) 100vw, 1104px" /></a></figure>
<p>Here, a single chart and an eye for patterns put us three weeks ahead of not only the recovery, but the following selloff, as well. Wave ‘v’ completed the impulse pattern at 1.3117 on June 27th. The a-b-c corrective sequence then lifted USDCAD to 1.3387 on July 7th. And just when the bulls thought they had finally regained traction, the bears returned with a vengeance and erased the entire recovery. Just as expected.</p>
<p><em>In our <a href="https://ewminteractive.com/elliott-wave-pro/" target="_blank" rel="noreferrer noopener">Elliott Wave PRO</a> subscriptions we provide analyses of Bitcoin, Gold, Crude Oil, EURUSD, USDCAD, USDJPY and the S&P 500 every Sunday and Wednesday! <mark>Check them out now!</mark></em></p>
<p>The post <a rel="nofollow" href="https://ewminteractive.com/several-elliott-wave-steps-ahead-usdcad">Several Elliott Wave Steps Ahead of USDCAD</a> appeared first on <a rel="nofollow" href="https://ewminteractive.com">EWM Interactive</a>.</p>
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