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USDCAD Elliott Wave View: Correction Ended

Summary

USDCAD is proposed to have ended a FLAT correction at 1.2618, and pair can pullback at least in 3 waves to correct cycle from 7/27 low (1.241)

Short term USDCAD Elliott Wave view suggests the decline to 1.2411 ended Intermediate wave (3) of an Elliott Wave impulse structure from 6/2 peak. Intermediate wave (4) bounce is in progress as a flat Elliott wave structure where Minor wave A ended at 1.2576 and Minor wave B ended at 1.2416. Minor wave C is subdivided as an impulse Elliott Wave structure. Up from 1.2416 low, Minute wave ((I)) ended at 1.253 and pullback to 1.2443 ended Minute wave ((ii)). Pair then rallied in Minute wave ((III)) ending at 1.2593 and Minute wave ((iv)) pullback ended at 1.2355. Near term, Minute wave ((V)) of C is proposed complete at 1.2619, which also complete Intermediate wave (4). While bounces stay below 1.2619, and more importantly below 1.2683, expect pair to extend lower or at least pullback in 3 waves. We don’t like buying the pair.

USDCAD 1 Hour Elliott Wave Chart

Elliott Wave FLAT structure is a 3 waves corrective pattern and there are 3 different types of Flats:
– Regular flat.
– Expanded flat
– Running flat.

The flat seen in USDCAD above is the Regular flat type. A Regular flat is a 3 waves corrective pattern which could often be seen in the market nowadays. The internal subdivision of Flat is labeled as A,B,C with 3-3-5 structure. Waves A and B are subdivided in corrective structures such as zigzag, flat, double three or triple three. Third wave C is always 5 waves structure, either as a motive impulse or an ending diagonal pattern. It’s important to notice that in a Regular Flat, wave B completes slightly above the starting point of wave A. Wave B usually ends at 50%, 61.8%, 76.4%, or 85.4% of wave A and Wave C of regular flat usually ends close to 100% -1.236% Fibonacci extension of A related to B.