USD/CAD pulls back ahead of Canada CPI: Wave four before more upside?

Gregor Horvat Wavetraders

USD/CAD retested the 2026 highs last week, and as I expected, we are now seeing a pullback. The recovery from the August 26 low still looks impulsive to me, and since we cannot count all five waves up yet, I see the current setback as wave four, with more upside possible after it is completed.

Price has now dipped a bit below the 1.4200–1.4125 support zone, so today's Canada CPI data could be important for the next move. But as long as the pair holds above 1.4000, I think the bullish view remains intact, and a move back above 1.4200 would be the first sign that the next leg higher in wave five is underway.

USDCAD 4H Elliott Wave chart: wave (4) pullback before wave (5) higher

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Author

Gregor Horvat

Wavetraders

Experience Grega is based in Slovenia and has been in the Forex market since 2003.

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