Thursday, October 6, 2016

The Bulls aren't done with Usdcad.

The bears ushered the Loonie into the beginning of the year in a rather fast typical five non-overlapping waves which we call Impulse wave.

The bearish impulse wave continued till May and ended at 1.2456 and ever since, has been engaging in a time-consuming corrective move upside. We have taken trades at some clear points in the correction and have maintained that the move still remain upside. Price has been validating our point of view along the way.

1.35 is the projected level for the correction to end, of course, this is probable; but believe that we are not doing any guess work.

The corrective pattern seems to be a double zigzag pattern. The 1st leg being a zigzag, 2nd -a triangle and the 3rd is looking like a zigzag as well. What is so interesting is the pattern symmetry is price moves just as we forecast.

The symmetrical part is that the 2nd wave of the 3rd leg of the double zigzag looks like a triangle as well and YES! that's what we want to take advantage of.

I hope you get the point with chart above. A triangle has completed the first 4 legs. If the last leg of the triangle completes as shown above and price shows a sign of further bullish move, we may see a renewed move to 1.35 and THAT we don't want to miss. It will mean that we are trading in the direction of the immediate intra-day trend.

This, surely, is not cast on IRON as price may go in many other ways. BUT we have created our edge and we just need price to approve before we take the next step.

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