USDCAD Elliott Wave Analysis - Trading Lounge Day Chart

U.S. Dollar / Canadian Dollar (USDCAD) - Daily Chart

USDCAD Elliott Wave Technical Analysis

• Function: Bullish Trend

• Mode: Impulsive

• Structure: Navy Blue Wave 1

• Position: Gray Wave 3

• Direction (Next Lower Degree): Navy Blue Wave 2

• Details: Navy Blue Wave 1 of 3 in progress

• Wave Cancel Invalidation Level: 1.34180

The USDCAD Elliott Wave analysis on the daily chart reveals a bullish trend marked by an impulsive wave structure. Gray Wave 3 is currently developing, operating as part of the larger Navy Blue Wave 1. This pattern suggests the market is advancing upwards, reflecting strong momentum from the resolution of earlier corrective waves.

The focus remains on Navy Blue Wave 1 of Gray Wave 3, which is actively evolving. Impulsive waves—especially Wave 3—often signify powerful price movements in the direction of the main trend. As long as this wave unfolds, USDCAD is likely to continue its upward trajectory. After this bullish phase concludes, the next wave to develop will be Navy Blue Wave 2, initiating a corrective pullback.

The 1.34180 level serves as the critical invalidation point. If the price falls below this threshold, the current Elliott Wave structure will be invalidated, requiring a reassessment of the market outlook. However, as long as the price remains above this level, the bullish trend will stay intact, supporting the forecast of further price gains.

Key Takeaways:

• The USDCAD is in an upward trend, driven by Gray Wave 3 within Navy Blue Wave 1.
• Expect additional upward movement until Wave 1 completes.
• Traders should monitor the 1.34180 invalidation level—a breach will disrupt the current structure.
• If the forecast holds, Navy Blue Wave 2 will follow as a corrective phase.

U.S. Dollar / Canadian Dollar (USDCAD) - 4-Hour Chart

USDCAD Elliott Wave Technical Analysis

• Function: Bullish Trend

• Mode: Impulsive

• Structure: Orange Wave 3

• Position: Navy Blue Wave 1

• Direction (Next Lower Degree): Orange Wave 4

• Details: Orange Wave 2 likely complete; Orange Wave 3 in progress within Navy Blue Wave 1

• Wave Cancel Invalidation Level: 1.34180

The 4-hour chart analysis of USDCAD aligns with the bullish outlook, showing an impulsive wave structure in progress. Orange Wave 3—part of Navy Blue Wave 1—is actively unfolding, indicating upward momentum. The recent completion of Orange Wave 2 supports this forecast of additional gains as Wave 3 develops.

Within Elliott Wave theory, Wave 3 tends to exhibit the strongest bullish momentum, often leading to substantial price increases. As Orange Wave 3 progresses, traders can anticipate further upward movement.

After Orange Wave 3 concludes, the market will likely enter Orange Wave 4, representing a temporary pullback. This corrective phase will offer a brief pause before the bullish trend resumes with further upward movement.

The invalidation level at 1.34180 remains a key threshold. A price decline below this point will invalidate the current wave count, requiring a revised analysis. However, as long as the price stays above this level, the bullish forecast remains valid.

Key Takeaways:

• USDCAD is experiencing upward momentum, with Orange Wave 3 developing within Navy Blue Wave 1.
• Completion of Orange Wave 2 supports additional price increases.
• Orange Wave 4 will follow as a corrective phase, offering a brief pullback.
• The invalidation point at 1.34180 is critical—breaching it will necessitate a new wave count.

Technical Analyst: Malik Awais

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