Crude oil bounce from 47.00 yesterday and it turning slightly bullish now which means that USDCAD will likely stay in downtrend. From an Elliott Wave perspective we see bearish impulse in progress, currently with sub-wave 4 underway that will ideally make test of 1.2238 resistance before prices attacks 1.2000 with fifth wave down.
USDCAD, 1H
NZDUSD is also on our radar screen this week as we think that rally from Aug 31 can be corrective. Reason is of-course slow and overlaping price action which is personality of a corrective movement. That said, upside can be limited, but after seven legs as correction is going complex. It’s a double zigzag with final wave c in play within wave Y that may look for a reversal at 0.7350-0.7380.
NZDUSD, 1H
