Elliott Wave Analysis: Bears Taking Over The USDCAD; Temporary Correction In View

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On the USDCAD we are looking at a possible higher degree reversal taking place now trading in final stages of sub-wave 3 of three, after a top had been placed at the 1.3585 labeled as the end of a higher degree wave C-circled. As such big ending diagonal is now completed and more weakness may follow in weeks to come. At the meantime we can focus on intra-day pullbacks for a possibility to join the downtrend.

On the updated chart we can see wave 3 approaching the Fibonacci ratio of 261.8, which can cause a turning point into the following wave 4.

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USDCAD, 4H

usdcad-4

 

 

 

 

 

 

 

 

 

 

 

The ending diagonal is a special type of motive wave that occurs primarily in the wave 5 position when price has moved too far and too fast. Some ending diagonal triangles appear in the C wave of an ABC correction. In all cases, the ending diagonal terminates the move of larger patterns. They consist out of five waves, with each having three more sub-waves.

Basic Ending Diagonal Pattern:

ending-diagonal

 

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Gregor Horvat first made his name in Slovenia and has become world famous in the forex market since 2003. He is both a trader and a technical analyst who offers trading strategies on the Fibonacci and Elliot Wave principle. His main focus is on currency pairs, U.S. stock market, gold and oil. Gregor Horvat found the forex service offered on http://www.ew-forecast.com/. This website provides traders technical analysis, while putting emphasis on behavioral patterns. These are derived from the Elliott Wave Principle (EWP). Traders who are interested in the entry and exit positions, and he probability of the former and latter follow the EWP on a regular basis.