Short Term Elliott Wave view in USDCAD suggests wave 2 ended at 1.338. The pair has extended lower within wave 3 with internal subdivision as a 5 waves impulse structure. Down from wave 2, wave (i) ended at 1.326 and rally in wave (ii) ended at 1.33. Pair then extended lower in wave (iii) towards 1.3139 and rally in wave (iv) ended at 1.3199. Pair made a final leg lower in wave (v) towards 1.3089. This completed wave ((i)) in higher degree.
Wave ((ii)) rally is in progress with internal subdivision as a zigzag Elliott Wave structure. Up from wave ((i)), wave (a) ended at 1.3232 and wave (b) pullback ended at 1.311 as an expanded flat. Down from wave (a), wave a ended at 1.3157, wave b ended at 1.324, and wave c lower ended at 1.311 which completed wave (b). Wave (c) is now in progress as a 5 waves. Up from wave (b), wave i ended at 1.322 and wave ii ended at 1.3145. Expect pair to extend higher in wave iii of (c), followed by wave iv pullback, and final wave v higher. Potential target higher is the blue box area of 1.3269 – 1.336 before it resumes lower. As far as pivot at 1.3385 high stays intact, expect the rally to fail at the blue box for further downside.
