Elliott wave Analysis: USDCAD Can Breach Even Higher After Pullback

Good evening traders!

USDCAD made a strong and sharp reaction higher lately, which was expected, as we were tracking a Elliott wave ending diagonal in sub-wave 5 of C). This sharp reversal can now be part of a bigger impulsive sequence, that may unfold in upcoming days and weeks. At the moment we see price slowly reversing down form 1.2710 region, where black wave 1 found a possible top, and now corrective wave 2 can show up. Region of support for wave 2 can later be found around the 1.2410/1.2484 region. That said, notice that we can also see a bullish head & shoulder formation, which could once wave 2 finds a base, suggest more bullish activity into wave 3.

USDCAD, 4H

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