Commodities Currency Pairs USDCAD and NZDUSD: Elliott Wave Analysis

Published: Oct 19, 2021, 10:21 UTC•1min read

Higher stocks are making the USD bearish, which came down also after some reversal on the US yields that stopped at the former high, around that broken trendline.

Mentioned in Article

USD/CAD

-0.19

NZD/CAD

+0.04

A surprise with more weakness on the US yields can cause more dollar weakness especially vs commodity currencies which appear to be in a very strong upward momentum.

USDCAD is coming down in the 4-hour chart as expected but notice that we are still observing wave C or 3 with room down to 1.2200/1.22560 area to complete the current five-wave cycle of the lower degree. However, there can be some pullback later this week for another recovery within a downtrend. Strong resistance levels are at 1.24 followed by 1.2495.

Know where USD/CAD is headed? Take advantage now with

Your capital is at risk

USDCAD 4h Elliott Wave Analysis

NZDUSD is nicely and impulsively recovering as expected after we noticed a big and complex W-X-Y corrective decline, so seems like a new five-wave bullish cycle is now in progress that can send the price at least back to September highs and 0.72- 0.73 area. So, more upside is in view, just be aware of a pullback in wave 4 before the uptrend for wave 5 resumes.