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Commodities Currency Pairs USDCAD and NZDUSD: Elliott Wave Analysis

By:
Gregor Horvat
Published: Oct 19, 2021, 10:21 UTC

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.

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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.

USDCAD 4h Elliott Wave Analysis

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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.

NZDUSD 4h Elliott Wave Analysis

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About the Author

Gregor Horvatcontributor

Gregor is based in Slovenia and has been involved in markets since 2003. He is the owner of Ew-Forecast, but before that, he was working for Capital Forex Group and TheLFB.com.

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