E USD/CAD Marching Lower

Good day traders! Today we are going to take a better look at USD/CAD, its daily and 4h movement.

On the daily chart of USD/CAD, we can see a bigger bearish impulse in the making since the end of April of 2017. A strong impulsive sequence is in the making with first two waves already completed. Current sharp fall from start of June looks like a blue wave three in progress, that can touch levels near 1.2000/1.2050 region and make a new temporary recovery into the following wave four. Once the following wave four unfolds, a new push lower into blue wave five may follow.

USD/CAD, Daily

On the 4h chart we have a better look at the structure, away from the previous red wave 4) correction. This structure is impulsive and strong in nature, which indicates a final wave 5) in progress. Wave five must be constructed by five sub-waves, meaning that even more weakness may follow on the pair, before a new change in trend comes our way. That said wave five can also be constructed by three sub-wave, but this occurs only in ending diagonal patterns. More on ending diagonal will be talked about in the next article.

All being said, at the moment we see price making a little rally, which can be the start of a minor correction of black wave 4. Ideally, the current correction will unfold a three-wave move with potential resistance to come in around the former wave four at the 1.2241 level. From the mentioned region a new drop can follow.

USDCAD, 4H

 

 

Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All our work is for educational purposes only.

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