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Chart Of the Day Updates:
Elliott wave view: Look at the commodities for USD/CAD set-up
During the previous session of trade equities moved higher for a second day in a row on a global average of 1.5%. As expected, the European session was also trading higher at the start of the session, when the German DAX hit the 5690 highs after the earlier open price at 5650.
During that time the Gold hit new highs at 1050 dollars per ounce, while the U.S. currency was almost unchanged, above the 76.00 dollar index support area. Gold however, has quickly reversed at this extreme area with a ten dollar decline that pushed the commodity pairs, such as AUD/USD and USD/CAD away from the previous high levels against the dollar. Meanwhile oil, interestingly, was trading very slowly around 71 dollars per barrel.
Our Elliott wave Team is looking for a temporary top on the gold market right now as an extended wave three looks to be completed around the current levels, which should put the corrective wave 4) in play over the coming weeks.
Oil is currently also trading around the top of a flat pattern in a corrective wave two, which is also looking bearish in the mid-term.
With the bearish expectations on both gold and oil, our Elliott wave team have sent trade signals for a bullish USD/CAD from the 1.0550 support region, as an ending diagonal may already be completed.
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