Elliott Wave Analysis On AUDUSD And USDCAD
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AUDUSD keeps moving higher probably in impulsive fashion if we consider strong rally from 0.7107. It also looks like an extended wave which typically occurs in the middle of a five wave move, so we suspect it’s wave 3 of three. At the same time we can see that price hit 261.8% Fibonacci extension level of wave 2 which is very common projected ratio for wave 3. That said, we think that Aussie can rise even more in days ahead, but after a pullback which can be underway down into a black wave 4 that can be looking for a support near 0.7350-0.7400.
AUDUSD, 4H
USDCAD
USDCAD has been trading sharply lower for the last few weeks, so either that’s wave 3 in progress as part of a new bearish impulse, or it can be only wave C of a corrective decline, but in either case we expect more weakness as leg from 1.4017 should be made by five waves. That said, be aware of another turn down after a corrective red wave 4) is finished, which can be still underway as a flat, so recent sharp leg down to the lows can be only a sub-wave B. So for now, the ideal resistance for a new sell-off remains at 1.3460-1.3520.
USDCAD, 4H
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