Short Term Elliott Wave view in USDCAD suggests that rally from October 20, 2021 low is unfolding as a zigzag Elliott Wave structure. Up from October 20 low, wave (A) ended at 1.2963 and pullback in wave (B) ended at 1.244. Pair has resumed higher in wave (C) with subdivision as a 5 waves impulse structure. Up from wave (B), wave (i) ended at 1.2587 and dips in wave (ii) ended at 1.2551. Pair resumes higher in wave (iii) towards 1.268 and pullback in wave (iv) ended at 1.264. Last leg higher wave (v) ended at 1.27019 and this completed wave ((i)) in higher degree. Pullback in wave ((ii)) has ended at 1.2556 with internal as a zigzag.
Down from wave ((i)), wave (a) ended at 1.2616, and wave (b) ended at 1.2669. Wave (c) lower ended at 1.2556 and completed wave ((ii)) in higher degree. Pair has resumed higher in wave ((iii)) and broken above wave ((i)). Up from wave ((ii)), wave (i) ended at 1.2647 and pullback in wave (ii) ended at 1.2578. Near term, as far as pivot at 1.2447 low stays intact, expect dips to find support in 3, 7, or 11 swing for further upside. Potential target higher in the shorter cycle is 100% – 161.8% Fibonacci extension from January 19, 2022 low which comes at 1.2809 – 1.296.
