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  • Indices Update: As of 16:00, these are your best and worst performers based on the London trading schedule: France 40: 0.01% FTSE 100: -0.06% Germany 30: -0.07% Wall Street: -0.33% US 500: -0.53% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/wuAFfNFdVH
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  • The Dollar is up after the core June PCE accelerated further to a 3.5% clip (highest since 1991), but US 10-Year yield is down 4 bps to 1.2290 and implied rate hikes through Dec 2022 has dropped 1.5bps from yesterday to 14bp (56% prob of hike) https://t.co/5Y0BWlPBUx
  • It's time to look at the monthly candles on charts and check in on the Dollar and Amazon. DailyFX's @JohnKicklighter covers the markets 👇 https://t.co/43BSSq9XIg
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  • Indices Update: As of 14:00, these are your best and worst performers based on the London trading schedule: France 40: -0.18% Wall Street: -0.26% Germany 30: -0.32% US 500: -0.41% FTSE 100: -0.54% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/6oyofVNacT
  • $USDCAD holding that spot of support looked at yday ~2426 question now is whether sellers push back in on a res test 25-2550. that could make for a compelling setup to a bearish $USD thesis https://t.co/GzRCITnrsW https://t.co/8mNgDQrlup
  • Strong Euro Zone growth and inflation data helped underpin recent Euro strength. Retail traders cut back long positions, increase net-shorts.Get your $EURUSD market update from @nickcawley1 here:https://t.co/uz3vjjaQdB https://t.co/hL4KqCM0yY
  • Gold (XAU/USD) prices remain unfazed by ECB decision. Silver (XAG/USD) price action remains supported by psychological support at $25.00. Get your market update from @Tams707 here:https://t.co/7BfS6ObsAZ https://t.co/zHWgAUHhca
  • The $VIX posted its biggest upside gap since March 8th this morning, but has quickly retreated on those gains https://t.co/6FXJmInzBN
Is the 12 Month Upward Correction in USD/CAD Over?

Is the 12 Month Upward Correction in USD/CAD Over?

Jeremy Wagner, CEWA-M, Head of Education

Nearly one year ago to the day, USD/CAD began a long and grueling upward correction. USD/CAD reached an important pivot point near 1.38 on Friday. A late Friday sell off was fueled by better than expected improvements in the Canadian unemployment rate sending the pair diving to finish the week.

The Elliott Wave picture for the Loonie shows a higher probability scenario of additional weakness towards 1.3411 and even lower. You see, it appears USD/CAD finished a terminal wave at multiple degrees on Friday. One of the patterns at smaller degree appears to be an Elliott Wave ending diagonal. Many times, an ending diagonal is swiftly retraced back to its origin. In this case, the origin of the ending diagonal pattern is 1.3411.

Is the 12 Month Upward Correction in USD/CAD Over?

Since this May 5th wave appears to be terminal at multiple degrees, it is possible we may be on the leading edges of a deep and protracted sell off that pressures new lows below 1.24. A break below 1.3639 may be an early warning signal that additional losses may continue. If USDCAD exceeds the 1.3793 high, then we will need to reassess the wave picture.

However, the sentiment picture is not as bearish. Traders remain net bearish the pair at -3.2. If this sentiment reading begins to increase, then that would signal a shift in sentiment that lines up with the overall Elliott Wave picture. Learn how to trade with sentiment with our IG client sentiment guide.

---Written by Jeremy Wagner, CEWA-M

Discuss this market with Jeremy in Monday’s US Opening Bell webinar.

Follow on twitter @JWagnerFXTrader .

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EUR/USD Elliott Wave article here.

GBP/USD Elliott Wave article here.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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