USD/CAD could weaken further – EW-Forecast

FXStreet (Barcelona) - Gregor Horvat of EW-Forecast, uses Elliott Wave Analysis to predict that USD/CAD might weaken further, with the pair expected to correct further.

Key Quotes

“USDCAD fell in the last two weeks, so we assume that pair accomplished a sharp five wave move within an extended red wave 3).”

“If that is the case then traders must be aware of more weakness within current wave 4).”

“Usually wave 4) will retrace for 38.2% compared to wave 3), which in our case comes in near 1.2200.”

“With that said, we assume that corrective set-back is still underway, and that new leg up may start in second part of February.”