{"id":16409,"date":"2025-10-29T20:41:31","date_gmt":"2025-10-29T20:41:31","guid":{"rendered":"https:\/\/alchemymarkets.com\/?post_type=market_insights&#038;p=16409"},"modified":"2025-10-29T20:41:33","modified_gmt":"2025-10-29T20:41:33","slug":"usdcad-wake-of-double-rate-cuts","status":"publish","type":"market_insights","link":"https:\/\/alchemymarkets.com\/sv\/education\/market-insights\/elliott-wave\/usdcad-wake-of-double-rate-cuts\/","title":{"rendered":"USD\/CAD Elliott Wave: The Wake of a Double Rate Cuts"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\"><strong>Executive Summary<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Bank of Canada and Fed both cut interest rates 25 basis points on Wednesday.<\/li>\n\n\n\n<li>Prices may be approaching a medium-term top.<\/li>\n\n\n\n<li>The bearish Elliott wave count hints at continued losses to 1.3538.<\/li>\n<\/ul>\n\n\n\n<p>Earlier today, the Bank of Canada cut its central bank target rate 25 basis points to 2.25%. Then, this afternoon, the Federal Reserve cut the US target interest rate 25 basis points to 3.75-4.00%.<\/p>\n\n\n\n<p>While market participants are anticipating another 25 basis point cut by the Fed in December, the Bank of Canada has signalled they\u2019ll take a break until 2026.<\/p>\n\n\n\n<p>This may create a diverging monetary policy between BOC and Fed as the interest rate spread between these two currencies may tighten further. This may help pull USD\/CAD down over the medium term.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Elliott Wave Analysis<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"794\" src=\"https:\/\/alchemymarkets.com\/wp-content\/uploads\/2025\/10\/USDCAD_2025-10-29_15-29-36-1024x794.png\" alt=\"\" class=\"wp-image-16410\" srcset=\"https:\/\/alchemymarkets.com\/wp-content\/uploads\/2025\/10\/USDCAD_2025-10-29_15-29-36-1024x794.png 1024w, https:\/\/alchemymarkets.com\/wp-content\/uploads\/2025\/10\/USDCAD_2025-10-29_15-29-36-300x232.png 300w, https:\/\/alchemymarkets.com\/wp-content\/uploads\/2025\/10\/USDCAD_2025-10-29_15-29-36-768x595.png 768w, https:\/\/alchemymarkets.com\/wp-content\/uploads\/2025\/10\/USDCAD_2025-10-29_15-29-36.png 1173w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>The rally from June 16 has stalled at 1.40800. The rally tracks best as a completed <a href=\"https:\/\/alchemymarkets.com\/education\/guides\/elliott-wave-theory\/\">Elliott wave zigzag pattern<\/a> labeled (a)-(b)-(c). The entire advance has pushed just beyond the <a href=\"https:\/\/alchemymarkets.com\/education\/indicators\/fibonacci-retracement\/\">38% Fibonacci retracement<\/a> level so it is possible to consider the advance a completed wave ((ii)).<\/p>\n\n\n\n<p>After today\u2019s dual central bank meetings, USD\/CAD prices started the day lower, but have rebounded leaving behind a <a href=\"https:\/\/alchemymarkets.com\/education\/candlesticks\/hammer-pattern\/\">bullish hammer type<\/a> of candlestick pattern.<\/p>\n\n\n\n<p>If this is correct, then USD\/CAD would push lower below today\u2019s low in the coming days and below 1.3539 in the coming weeks. The key <a href=\"https:\/\/alchemymarkets.com\/education\/guides\/support-and-resistance\/\">resistance level<\/a> to this bearish forecast is the October 14 high of 1.4080.<\/p>\n\n\n\n<p>If 1.4080 is broken to the upside, then we\u2019ll consider wave ((ii)) extending higher, possibly in a double zigzag pattern.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Bottom Line<\/strong><\/h2>\n\n\n\n<p>USD\/CAD appears to have printed a medium term top that could lead to a bearish trend driving prices below 1.3539.<\/p>\n\n\n\n<p>&nbsp;If 1.4080 is broken to the upside, then another pattern would be in development.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>USD\/CAD Elliott Wave analysis highlights key resistance was reached and forecasts a bearish downtrend that may reach 1.3538. See other key levels inside.<\/p>\n","protected":false},"author":160,"featured_media":16413,"parent":0,"comment_status":"open","ping_status":"closed","template":"","market_insights_categories":[16],"class_list":["post-16409","market_insights","type-market_insights","status-publish","has-post-thumbnail","hentry","market_insights_categories-elliott-wave"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>USD\/CAD Elliott Wave: The Wake of a Double Rate Cuts - Alchemy Markets<\/title>\n<meta name=\"description\" content=\"USD\/CAD Elliott Wave analysis highlights key resistance was reached and forecasts a bearish downtrend that may reach 1.3538. 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