Markets are in risk-off mode with stocks coming sharply to the downside last week which has an impact on other sectors as well. We also see cryptos in sharp decline while crude oil and gold are moving into resistance. A drop on these two will likely cause even more upside on USD Index. However, the main driver for the USD this week can be FOMC on Wednesday.
USDCAD is coming down as crude keeps moving higher. However, the pair found some support at 1.2450 area from where we see an intraday recovery that should be made by a minimum of three legs, since we think that drop from 1.2964 is now completed; either as a five-wave move, or even corrective pattern. It's not a clear price action so we have to wait on more price data, but based on both counts we may see a rally to 1.27-1.28 important resistance area.
USDCAD 4h Elliott Wave Analysis
USDJPY has been very bullish through 2021 but now it may face a limited upside since we are seeing a fifth wave trying to complete wave c of a higher degree wave d) that can belong to a multi-year triangle. However, calling a top can be too soon as pair has another sharp intraday rise now on 4h chart, where we see more near-term strength coming to complete a minimum three wave rise. Resistance can be then around 115.70 level.
USDJPY Elliott Wave Analysis
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