USDCAD Forex Analysis – Triangle In Progress
Currencies / Canadian $ Nov 20, 2013 - 03:39 PM GMTBy: Gregor_Horvat
USDCAD reversed lower at the end of last week from that trendline connected from July highs, which suggests that rally from 1.0180 was corrective leg. If that is the case then pair could be forming a bigger and complex correction than we firstly thought. We are now observing idea of a triangle with wave E underway back to 1.0300. This will be a final leg in the pattern, so be aware of a bullish period after completed pattern.
USDCAD Elliott Wave Daily
On the 4h Chart USDCAD has turned bearish at the end of last week after a broken trendline connected from Oct 22nd low. This break suggests that rally from 1.0180 was a complex double zigzag, labeled as (w)-(x)-(y) which is a corrective move that represents a wave D that is part of a larger triangle pattern. If that is the case then pair is now moving down for a three wave decline in wave E, a final leg of a pattern that may look for a support around 1.0240-1.0280.
USDCAD Elliott Wave 4h
Elliott Wave Education: Triangle Pattern
A Triangle is a common 5 wave pattern labeled A-B-C-D-E that moves counter-trend and is corrective in nature. Triangles move within two channel lines drawn from waves A to C, and from waves B to D. A Triangle is either contracting or expanding depending on whether the channel lines are converging or expanding. Triangles are overlapping five wave affairs that subdivide 3-3-3-3-3.
- structure is 3-3-3-3-3
- each subwave of a triangle is usably a zig-zag
- wave E must end in the price territory of wave A
- one subwave of a triangle usually has a much more complex structure than others subwaves
- appears in wave four in an impulse, wave B in an A-B-C, wave X or wave Y in a double threes, wave X or wave Z in a triple threes
Ew-forecast.com is providing advanced technical analysis for the financial markets (Forex, Gold, Oil & S&P) with method called Elliott Wave Principle. We help traders who are interested in Elliott Wave theory to understand it correctly. We are doing our best to explain our view and bias as simple as possible with educational goal, because knowledge itself is power.
Gregor is based in Slovenia and has been in Forex market since 2003. His approach to the markets is mainly technical. He uses a lot of different methods when analyzing the markets; from candlestick patterns, MA, technical indicators etc. His specialty however is Elliott Wave Theory which could be very helpful to traders.
He was working for Capital Forex Group and TheLFB.com. His featured articles have been published in: Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu. He mostly focuses on currencies, gold, oil, and some major US indices.
© 2013 Copyright Gregor Horvat - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.
© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.
