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.

Free Trading Guides
EUR/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Mixed
Gold
Bearish
Oil - US Crude
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Bitcoin
Bearish
More View more
Notice

DailyFX PLUS Content Now Available Freely to all DailyFX Users

Real Time News
  • Indices Update: As of 07:00, these are your best and worst performers based on the London trading schedule: France 40: -0.07% Germany 30: -0.13% Wall Street: -0.33% US 500: -0.36% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/LkYHBL0dUI
  • JPY BOJ Kuroda: Will closely examine prices, economy at next meeting
  • CHF Switzerland Aug Exports MM Actual: -4.4% Previous: -1.2% Imports MM Actual: 1.0% Previous: -0.5% Swiss Watch Exports YY Actual: 1.5% Previous: 4.7%
  • European Opening Calls: From IG #FTSE 7299 -0.20% #DAX 12384 -0.04% #CAC 5621 +0.01% #IBEX 9046 +0.16% #STOXX 3529 +0.03%
  • Follow @DailyFXedu for your regular #webinar updates with @DailyFX analysts and catch up on the webinars you missed. https://t.co/72SjAaa27X
  • My trading video for today: $Dollar and S&P 500 Strategy for the #FOMC Rate Decision' https://www.dailyfx.com/forex/video/daily_news_report/2019/09/19/Dollar-and-SP-500-Steady-After-Fed-Cut-Monetary-Policy-Remains-Top-Concern.html?utm_source=Twitter&utm_medium=Kicklighter&utm_campaign=twr
  • How can you avoid #FOMOintrading with easy seven steps to creating a trading plan? Find out from @RichardSnowFX here: https://t.co/y2UvtIRZAG https://t.co/mBzJBviQDO
  • 🇯🇵 (JPY) All Industry Activity Index (MoM) (JUL), Actual: 0.2% Expected: 0.2% Previous: -0.7% https://www.dailyfx.com/calendar?utm_source=Twitter&utm_medium=TweetRobot&utm_campaign=twr
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.35%, while traders in France 40 are at opposite extremes with 83.89%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/SXDGRBOC4e
  • Heads Up:🇯🇵 JPY All Industry Activity Index (MoM) (JUL) due at 04:30 GMT (15min), Actual: N/A Expected: 0.2% Previous: -0.8% https://www.dailyfx.com/economic-calendar#2019-09-19
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, Senior Strategist
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.

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

DISCLOSURES

News & Analysis at your fingertips.