Three Wave Rally Suggests More Upside On USDCAD-Elliott Wave Analysis


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USDCAD slowed down over the past few sessions in 1.0270-1.0310 range which has been expected after an impulsive sharp rally from 1.0181 labelled as wave a). We know that after every impulse correction follows which typically means a slow and choppy waves in tight ranges. And that is exactly what we see on USDCAD right now, so we suspect that pull-back from 1.0310 represents wave b) as a part of incomplete recovery from 1.0181. With that in mind, short-term traders could be interested in longs from around 1.0230-1.0260 region to catch wave c) up. Any stops in such case should be placed beneath 1.0181 invalidation level.


USCAD 1h Elliott Wave Analysis
USCAD 1h Elliott Wave Analysis


A zig-zag is a 3-wave structure labeled A-B-C, generally moving counter to the larger trend. It is one of the most common corrective Elliott patterns. From a trading perspective wave C represents a trading opportunity from end point of wave B, as long as wave B stays above the start point of wave A.

Zig Zag Elliott Wave Pattern
Zig Zag Elliott Wave Pattern
  • Structure is 5-3-5
  • wave A must be a motive wave
  • wave B can only be a corrective pattern
  • wave B must be shorter than wave A by price distance
  • wave C must be a motive wave.
  • appears in wave two or four in an impulse, wave B in an A-B-C, wave X in a double or triple zig-zag, or wave Y in a triple threes

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