Elliott Wave Analysis: USDCAD Trading In A Flat

USDCAD turned lower in the last two days, making a new bearish impulse that we see it as wave C of a flat in a higher degree correction. As we know wave C should be made by five waves so another short-term decline beneath 1.2990 can be in play for wave five of C, before market turns higher with impulsive reaction. Daily close above 1.3130 would suggest that lows are already in place.

A Flat is a three-wave pattern labeled A-B-C that generally moves sideways. It is corrective, counter-trend and is a very common Elliott pattern.

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