Forex

EURCAD and GBPCAD Pairs Are In Higher Degree CorrectionsJul 26, 2023

EURCAD and GBPCAD pairs are in higher degree corrections, as we see them turning down with short-term bearish setup formations by Elliott wave theory.

EURCAD and GBPCAD pairs turned sharply and impulsively down in May/June, which was first leg A of a three-wave higher degree A-B-C corrective slow down, which indicates for more weakness for wave C after a corrective recovery in wave B.

After we spotted a five-wave bearish impulse into wave A, followed by a three-wave a-b-c correction in B on EURCAD pair, we can now see it nicely turning back to bearish mode for wave C, which should be completed by a five-wave bearish cycle of the lower degree. Currently we can see it forming a lower degree bearish setup formation with sharp and impulsive turn down into subwave »i«, so watch out for a bearish resumption once a short-term three-wave a-b-c pullback in subwave »ii« fully unfolds.

EURCAD and GBPCAD Pairs Are In Higher Degree Corrections EURCAD 4H Chart
EURCAD 4H Chart

GBPCAD is trading nicely as expected after we noticed a temporary top for a higher degree wave (A)/(1). With recent five-wave intraday bearish reversal, which we see it as a first leg A, it could be now in a three-wave a-b-c corrective recovery within wave B that can retest 1.72 resistance area before wave C occurs.

EURCAD and GBPCAD Pairs Are In Higher Degree Corrections GBPCAD 1H Chart
GBPCAD 1H Chart

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