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
GBP/USD
Mixed
USD/JPY
Mixed
Gold
Mixed
Oil - US Crude
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
Bitcoin
Bearish
More View more
Notice

DailyFX PLUS Content Now Available Freely to all DailyFX Users

Real Time News
  • LIVE NOW: Join DailyFX Market Analyst @DavidCottleFX for a look ahead at the major economic data which will drive Asia Pacific markets in the coming seven days. https://www.dailyfx.com/webinars/985612483?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • 🇪🇺 (EUR) Markit Eurozone Services PMI (SEP P), Actual: 52.0 Expected: 53.2 Previous: 53.5 https://www.dailyfx.com/calendar?utm_source=Twitter&utm_medium=TweetRobot&utm_campaign=twr
  • 🇪🇺 (EUR) Markit Eurozone Composite PMI (SEP P), Actual: 50.4 Expected: 52.0 Previous: 51.9 https://www.dailyfx.com/calendar?utm_source=Twitter&utm_medium=TweetRobot&utm_campaign=twr
  • 🇪🇺 (EUR) Markit Eurozone Manufacturing PMI (SEP P), Actual: 45.6 Expected: 47.3 Previous: 47.0 https://www.dailyfx.com/calendar?utm_source=Twitter&utm_medium=TweetRobot&utm_campaign=twr
  • Have you joined @DailyFX @facebook group yet? Discuss your #forex strategies and brush up on your skills with us here: https://t.co/jtY1G7g8yx https://t.co/AGxlGkW2C6
  • Heads Up:🇪🇺 EUR Markit Eurozone Composite PMI (SEP P) due at 08:00 GMT (15min), Actual: N/A Expected: 52.0 Previous: 51.9 https://www.dailyfx.com/economic-calendar#2019-09-23
  • Heads Up:🇪🇺 EUR Markit Eurozone Services PMI (SEP P) due at 08:00 GMT (15min), Actual: N/A Expected: 53.2 Previous: 53.5 https://www.dailyfx.com/economic-calendar#2019-09-23
  • Heads Up:🇪🇺 EUR Markit Eurozone Manufacturing PMI (SEP P) due at 08:00 GMT (15min), Actual: N/A Expected: 47.3 Previous: 47.0 https://www.dailyfx.com/economic-calendar#2019-09-23
  • Heads Up: 🇪🇺 (EUR) Markit Eurozone Composite PMI (SEP P) due at 08:00:00 GMT (15min) Expected: 52.0 Previous: 51.9
  • Heads Up: 🇪🇺 (EUR) Markit Eurozone Services PMI (SEP P) due at 08:00:00 GMT (15min) Expected: 53.2 Previous: 53.5
USD/CAD Falls Towards Support Offering a Bullish Setup

USD/CAD Falls Towards Support Offering a Bullish Setup

2017-12-27 00:05:00
Jeremy Wagner, CEWA-M, Senior Strategist
Share:

Talking points

-USD/CAD in a sideways consolidation that likely breaks to the upside

-Wait for bullish break of December 22 high

-This break higher may be the final wave of a larger second wave

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

Previously, we wrote how any weakness in USD/CAD may prove to be temporary. The price action since then has driven the market into a sideways consolidation, which continues to support an eventual bullish breakout. Since the market is currently sandwiched between two holidays, we may have to wait until the New Year for the market to break out.

Sideways ranges can be difficult to pinpoint from an Elliott Wave perspective. However, since we are consolidating sideways after a large run higher, this provides a hint that the next wave may breakout above resistance.

USD/CAD Falls Towards Support Offering a Bullish Setup

The Elliott Wave model we are following suggests we are in a (b) or (x) wave of a bullish sequence. Therefore, once USD/CAD finds support, we are anticipating the dip to be completely retraced back up to 1.29 and possibly up to 1.31.

This sideways consolidation appears to be grinding as an Elliott Wave flat pattern. We are anticipating the pattern to find support near 1.2600-1.2660. After entering this price zone, a break above 1.2796 would activate a long position in USD/CAD with risk set just below the December swing low.

If price were successful in finding support, the pattern would call for a break above 1.29 that may reach 1.3149 where this wave would be approximately 61% the length of the September 2017-October 2017 wave.

Bottom line, though we anticipate a low forming nearby, it is prudent to wait for a subsequent rally to break the December 22 high prior to entering the trade. Also keep in mind this rally, if it builds, is a corrective rally in a larger wave 2.

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

See the longer term Elliott Wave pattern for USD/CAD in Jeremy’s “What to Watch For in 2018” webinar. (If you cannot make it in real time, register to receive the recording via email the next day.)

New to trading FX?We created this guide just for you.

USDCAD Intraday Elliott Wave Count

USD/CAD Falls Towards Support Offering a Bullish Setup

---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.

Follow on twitter @JWagnerFXTrader .

Join Jeremy’s distribution list.

Recent Elliott Wave articles by Jeremy:

Elliott Wave Analysis: Crude Oil Price Bursts Higher in 5th Wave

Santa Brings a Gold Price Rally for Christmas

EURUSD Elliott Wave Pattern Looks to Higher Levels

NZDUSD Elliott Wave Analysis: Fourth Wave Close to Terminating

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

DISCLOSURES

News & Analysis at your fingertips.