EURCAD Developing a Bearish 1-5 Pattern

EURCAD is currently developing a bearish 1-5 impulse wave pattern, as postulated by the Elliott Wave Theory. Bearish pressure on the euro was increased today following the release of the weaker-than-expected GDP numbers in the Eurozone for Q4.

Given that the price action completed the second retracement leg (3-4) just below the 38.2 per cent Fibonacci retracement level at 1.42691, the third and final impulse leg (4-5) is now likely to head towards the previous swing low at 1.41000. That is if the price action manages to penetrate below the 50-day MA (in green), 100-day MA (in blue) and the 61.8 per cent Fibonacci at 1.42045.