USDCAD looks to be in corrective mode following the double top which tested .618 retracement of the move down from the 13th of March high. There is a strong support level below (highlighted by the channel), which i'm anticipating will hold in the short term. This level will need to be broken to the down side taking out the previous 2 swing lows to confirm my analysis.
The Elliott Wave count also confirms this analysis, the move from the first high (wave 5) would fit a flat for wave A of an ABC correction. Wave B most commonly retraces 50% of wave A, which would fit nicely as the right shoulder and wave 2 of C would be around the retest of the neckline.
If support holds and we move higher to take out the 1.290 high, this analysis would need to be re-evaluated.
The Elliott Wave count also confirms this analysis, the move from the first high (wave 5) would fit a flat for wave A of an ABC correction. Wave B most commonly retraces 50% of wave A, which would fit nicely as the right shoulder and wave 2 of C would be around the retest of the neckline.
If support holds and we move higher to take out the 1.290 high, this analysis would need to be re-evaluated.