USDCAD | Elliott Wave | Bear View 1.33 | Jeremy Wagner

Interesting level here in USDCAD. The primary Elliott Wave pattern suggests a deeper cut, perhaps down to 1.33.

However, we have horizontal resistance turned to new support from May 2017 in the way. Which pattern prevails?

There is likely enough support to pop prices higher a little. So long as USDCAD is below the May 22 high, a break down below 1.38 is possible.

Trade closed: target reached:

USDCAD reached the top end of the target range. The minimum waves can be counted in place for a reversal though we cannot rule out further moves lower.

The point being the odds have shifted towards a bullish reversal as it is no longer a good risk to reward ratio to be short. Wave relationships and a trendline are guarding this 1.32-1.33 zone.