Wednesday, October 1, 2014

Cadchf In a Triangle

On 23rd of september, I posted my view on this pair based on elliot wave analysis, you can read here.

Price has not been moving downwards as i forecast. With more price candles formed especially on the 4H chart, I have now come with an alternative wave count. Let me stress it that the two wave counts are still valid until price proves one correct and the other incorrect.

Price presently is consolidating in a triangle pattern and a break below it will support the bears and the first wave count will thereby be valid.

Going by the alternate wave count, the 5-wave bullish impulsive move explained in the first analysis might not be ended yet, It could be the wave 1 of the 5th wave of the impulsive move which started from 0.8400 support level and the present triangle could be wave 2 of 5.

 If the triangle is broken upside, price should continue the upside move to 0.8690-0.8700 which is a strong resistance.

Breakout of the triangle should decide the next medium term movement of this currency pair and I will watch out closely to be part of the move.

I am presently out of my bear position. I want to be sure of the next move before I join again.
I will keep an update of this pair as price movement unfolds

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