By Elliott Wave Analysis | USDCAD has turned nicely lower in the last few sessions, clearly in five waves from 1.0389 so we suspect that larger trend for this market is down. However, before downtrend may continue we may see a corrective intra-day bounce back to 1.0326 swing high of a wave four and swing low from Oct 15th.
Silver broke significantly to the upside today and stopped at equality level of a third leg compared to the first one. It was a nice simple prediction for short-term bullish metals but not its time to stay aside and wait if we see move back below 21 or no. Break of 21.00 level will indicate a new leg down for silver.
Elliott Wave Education: Impulse Wave
Impulse is the most common motive wave.
- Wave 1 must be an impulse or a leading diagonal
- Wave 2 can be any corrective pattern except a triangle
- Wave 2 must not retrace more than 100% of wave 1
- Wave 3 must be an Impulse.
- Wave 3 must be longer than wave 2
- Wave 4 can be any corrective pattern (zig-zag, double or triple zig-zag, triangle, flat, double or triple three)
- Waves 4 must not trade into a territory of a wave 1
- Wave 5 must be an impulse or an ending diagonal
- Wave 3 must never be the shortest wave when compared to waves 1 and 5.
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