USD/CAD Wave Analysis: New Bearish Wave Or Bullish Renewal?
USD/CAD has a bullish support on an H16 chart and continues to build the 5th wave up within the complex flat 5-wave structure.
When we switch to a smaller H4 time frame, we could see a 5-wave irregular bullish pattern made with aqua lines. The recent drop acts as a bearish correction subwave within the last 5th bullish wave. If the current retracement accrues, the Loonie will proceed to build another bullish leg. In the same time the Awesome Oscillator shows a bearish divergence. So, if the bearish wave on H4 proceeds, it will turn into the new impulse down.
The Canadian dollar crashed at the American session on September 28 after OPEC announced the historic cut in oil production. We could see this drop as the C impulse bearish wave on an m15 chart that followed the earlier 1st impulse down and the 2nd correction up. These waves are drawn with orange lines. We could see that the bearish move on m15 is finished and the new 3-wave or 5-wave bullish pattern is developing.