News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Mixed
Oil - US Crude
Bearish
Wall Street
Mixed
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • Lately, capital has been flowing out of #EmergingMarkets and #ASEAN economies, pushing the US Dollar higher against their respective currencies Will this trend continue this week? Check out my latest fundamental outlook here - https://www.dailyfx.com/forex/fundamental/article/special_report/2020/09/28/US-Dollar-Rose-Capital-Fled-Emerging-Markets-SGD-IDR-PHP-MYR-at-Risk.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/iyFPD664Cb
  • It’s important for traders to be familiar with FX spreads as they are the primary cost of trading currencies. Understand a pair's spread here: https://t.co/S9CEcBm5Qe https://t.co/VNQpG1CUVM
  • $AUDUSD price action strikingly similar to that seen in 2002 - Break above the 1997 downtrend ignited a 106% surge, eventually peaking in July 2008 (0.9850) - Consolidation above downtrend preceded upside push - Bullish RSI divergence appears to signal cyclical upturn https://t.co/j3IumVbAlB
  • Heads Up:🇯🇵 Leading Economic Index Final (JUL) due at 05:00 GMT (15min) Expected: 86.9 Previous: 83.8 https://www.dailyfx.com/economic-calendar#2020-09-28
  • Heads Up:🇯🇵 Coincident Index Final (JUL) due at 05:00 GMT (15min) Expected: 76.2 Previous: 74.4 https://www.dailyfx.com/economic-calendar#2020-09-28
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.83%, while traders in EUR/GBP are at opposite extremes with 64.39%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/MQNUIOEuMx
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.42% 🇬🇧GBP: 0.21% 🇯🇵JPY: 0.21% 🇨🇦CAD: 0.06% 🇪🇺EUR: 0.04% 🇨🇭CHF: 0.03% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/ta4Cy97vbC
  • Indices Update: As of 04:00, these are your best and worst performers based on the London trading schedule: Germany 30: 1.56% France 40: 1.56% FTSE 100: 1.23% Wall Street: 0.47% US 500: 0.39% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/lA0TK0OTZQ
  • #ASX200 struggling to break above key resistance at 6000 after Westpac retracted its calls for an #RBA rate cut in October RSI hints at fading bullish momentum which suggests that a push towards the monthly low is on the cards, if 200-MA resistance (6020) remains intact. $XJO https://t.co/iXrCqbayfc
  • $AUDJPY poised to move higher after finding support at the 200-day moving average. $CADJPY eyeing a push back towards the yearly high $EURJPY perched atop key support after breaking below Rising Wedge support. Are further losses in the offing? $JPY https://www.dailyfx.com/forex/market_alert/2020/09/28/Japanese-Yen-Outlook-AUDJPY-CADJPY-EURJPY-Levels-To-Watch-.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Moss&utm_campaign=twr https://t.co/v03Ge14yvW
USD/CAD Up 3% from September Low, How High Will it Rebound?

USD/CAD Up 3% from September Low, How High Will it Rebound?

2017-10-24 01:12:00
Jeremy Wagner, CEWA-M, Head of Education
Share:

Later this week, Bank of Canada releases their latest round of interest rate announcements. As we await BOC, what can we plan for regarding USD/CAD price action?

The Elliott Wave model we are following suggests the longer term trend is still pointed lower. However, in the shorter term, USD/CAD may continue to work higher into the 1.27-1.31 range. We are anticipating this rebound higher to be a partial retracement relative to the May 2017 sell off.

In Elliott Wave GPS depicts USD/CAD may be in wave 2 of (C). For those unfamiliar with Elliott Wave, ‘C’ waves unfold as five wave moves, unless they are ‘C’ waves of a triangle. We are definitely not in a ‘C’ wave of a triangle. Therefore, we can anticipate three more waves to unfold to lower levels.

Want to learn more about Elliott Wave analysis? Grab the Beginner and Advanced Elliott Wave guides and keep them near your computer.

USD/CAD Up 3% from September Low, How High Will it Rebound?

Additional Reading: Elliott Wave Patterns – What is a zigzag?

Trading USD/CAD through the Bank of Canada rate announcement may be tricky. Since we are not near any significant retracement levels, it may be best to stand aside and let price action develop further. (If you wish to join DailyFX for the live news coverage of BOC, join the webinar presentation.)

A break below 1.2453 on USD/CAD would create a lower low. At that point, we will need to inspect the wave picture more closely for symptoms of a top.

USD/CAD Up 3% from September Low, How High Will it Rebound?

As a result, entertaining a cross pair including CAD may be an opportunity through major news. Our independent study of EURUSD, for example, implies we may see that market grind higher. Since we are anticipating USD/CAD and EUR/USD to move higher, then a bullish EUR/CAD bias may be warranted. Use simple technical analytical tools like support and resistance levels to identify points of entry. One such breakout opportunity is approaching near 1.49.

Why do a majority of traders lose? Find out in our traits of successful traders research.

USD/CAD Up 3% from September Low, How High Will it Rebound?

---Written by Jeremy Wagner, CEWA-M

Jeremy is a Certified Elliott Wave analyst with a Master’s designation. This report is intended to help break down the patterns according to Elliott Wave theory.

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

Follow on twitter @JWagnerFXTrader .

Join Jeremy’s distribution list.

Other Elliott Wave forecasts by Jeremy:

Gold prices may see $1200 in the coming weeks.

USDJPY grabs highest level in three months.

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

DISCLOSURES