USDCAD Elliott Wave Analysis : A Completed Three Wave Rally From 1.0180 Is Pointing Lower

usdcad4h

USDCAD 4h
USDCAD is looking bearish after a turning point from 1.0418 where a three wave rally from 1.0180 most likely completed a corrective retracement labeled as (a)-(b)-(c). Notice that pair already took out the lower trendline of a corrective channel that usually leads to a continuation of a larger trend. In our case larger trend since early September is down so we expect more weakness in days ahead and possibly revisit of 1.0180 level, probably next week. Based on the latest price action from 1.0418 we see prices moving down in third leg of decline which is ideally wave (iii) that will accelerate to typical 161.8% Fibonacci target once the lower line of a base channel is taken out. Critical, short-term invalidation level is now at 1.0390.
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Gregor Horvat, based in Slovenia, has been in the forex markets since 2003. He is a technical analyst and individual trader who has worked for Capital Forex Group and TheLFB.com. He also is founder of forex services on www.ew-forecast.com. EW-Forecast.com provides technical analysis of the financial markets, highlighting behavioral patterns based on the Elliott Wave Principle (EWP). Website: http://www.ew-forecast.com