Three Wave Rally Suggests More Upside On USDCAD-Elliott Wave Analysis

0
88

Written by www.ew-forecast.com |

USDCAD slowed down over the past few sessions in 1.0270-1.0310 range which has been expected after an impulsive sharp rally from 1.0181 labelled as wave a). We know that after every impulse correction follows which typically means a slow and choppy waves in tight ranges. And that is exactly what we see on USDCAD right now, so we suspect that pull-back from 1.0310 represents wave b) as a part of incomplete recovery from 1.0181. With that in mind, short-term traders could be interested in longs from around 1.0230-1.0260 region to catch wave c) up. Any stops in such case should be placed beneath 1.0181 invalidation level.

USDCAD 1h

USCAD 1h Elliott Wave Analysis
USCAD 1h Elliott Wave Analysis

Zig-zag

A zig-zag is a 3-wave structure labeled A-B-C, generally moving counter to the larger trend. It is one of the most common corrective Elliott patterns. From a trading perspective wave C represents a trading opportunity from end point of wave B, as long as wave B stays above the start point of wave A.

Zig Zag Elliott Wave Pattern
Zig Zag Elliott Wave Pattern
  • Structure is 5-3-5
  • wave A must be a motive wave
  • wave B can only be a corrective pattern
  • wave B must be shorter than wave A by price distance
  • wave C must be a motive wave.
  • appears in wave two or four in an impulse, wave B in an A-B-C, wave X in a double or triple zig-zag, or wave Y in a triple threes

Written by www.ew-forecast.com | Try EW-Forecast.com’s Services Free For 7 Days at http://www.ew-forecast.com/service