In this technical blog we are going to take a look at USDCAD October 18th 2016, 4 hour chart. In which pair was showing incomplete Elliott wave bullish sequence from May 3rd 2016 lows (1.2460) showing higher highs & higher lows. Hence, the strategy was to buy the dips in sequence of 3, 7 or 11 swings for further upside in the pair against August 18 low (1.2759) for potential upside target at 1.35-1.3675 area. Thus the 4 hour chart from October 18th suggest that pair was correcting the cycle from August lows in wave X in red pullback as irregular correction, which mainly known as Flat 3,3,5 structure.
USDCAD October 18th 2016, 4 hour chart:
$USDCAD October 19th 2016, 1 hour NY updated chart: Preferred Elliott wave count was suggesting while the pivot from 1.3307 wave (ii) connector’s peak stays intact pair should be looking for another marginal push lower towards inverse 1.236-1.618% extension area (1.3028-1.2995) to complete the 5 waves sequence from October 7th peak (1.3312) before it find buyer’s for 1.35-1.3675 area potentially or for 3 swing bounce at least to correct the cycle from the peak.
$USDCAD October 21st 2016, 1 hour NY updated chart: suggesting the market gave us the push lower towards (1.3028-1.2995) area as expected & formed the new low at (1.3005) within X pullback. Since then Market gave us the reaction higher as expected & it broke to new highs above October 7th peak (1.3312) currently sitting at (1.3331) thus allowed our members to create a risk free position.
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