Based on the Elliott Wave count we can tell that EUR/CAD is at the beginning of resuming its long term downtrend. On a weekly chart we can discern an WXY pattern which can be subdivided into wxy patterns of smaller degree. Right now we're testing an historical level 1.4500 which has provided good resistance in the last few years.

Major Levels to watch:
  • 1.4500 Big round number and psychological number, Resistance level;
  • 1.4250 Previous swing low and support level;
Figure 1. EUR/CAD Weekly Chart

On the daily chart (see Figure 2)we can have a closer look into the current up leg which is wave X in blue. We can tell that the same as the bigger structure the wave X is also "constructed" of wxy patterns of smaller degree.

Figure 2. EUR/CAD Daily Chart

Forecast:
Based on the Elliott Wave analysis and my projections we should see an exchange rate for EUR/CAD of 1.4244 for 1st of October 2015 .

Best Regards,
Daytrader21
Translate to English Show original