It’s not up to a currency pair that it rises 17% over a period of months. That’s what stocks and crypto are for. Yet, EURCAD surged from 1.2876 in August, 2022, to over 1.5110 last month, showing that even Forex traders can sometimes “buy and hold“. Only sometimes, though, because this strategy only works until it doesn’t.
As the pair hovers near 1,5060, traders wonder if it can continue to rally. We’re wondering the same thing. It is nearly impossible to correctly interpret the multitude of macro-factors that affect the foreign exchange markets. That’s why we rely on Elliott Wave analysis instead, whose patterns are known for their ability to absorb the related news and events.
Elliott Waves are also found in commodities, stock, and crypto markets. You can learn how to find them with our Elliott Wave Video course!
EURCAD 4h Chart reveals the five-wave impulse that pushed EURCAD from 1.2876 up to 1.5110. We’ve labeled the pattern 1-2-3-4-5. Also visible are the five subwaves of Wave 3, marked i, ii, iii, iv and v. Both pairs have taken into consideration the alternation guideline. Waves 2 and II have been sideways corrections.
