The USD/CAD currency pair has been displaying an impulsive upward trend since forming a significant low at 1.3093 in December 2023. According to Elliott Wave analysis, the ongoing rally appears to be unfolding as a five-wave impulse pattern, suggesting the uptrend is not yet complete. The February–March recovery was labeled as wave 1, while the April decline formed wave 2. A strong advance from there, highlighted by a sharp rise in July, suggests that wave 3 may be nearing completion, with wave 4 correction potentially on the horizon.
Looking ahead, a dip in wave 4 could see the pair retrace to around the 1.3620–1.3570 support range before launching into wave 5, potentially completing the five-wave cycle above 1.3900. While short-term corrections are likely, the larger forecast remains bullish as long as the 1.3370 low holds. This structure fits with the broader Elliott Wave framework, indicating that USD/CAD may continue to strengthen in the weeks ahead as the bullish impulse reaches its final stages.
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