Elliott Wave Analysis: EURCAD Looking Higher
Hello traders!
We have noticed a recognizable pattern with pretty clear wave structure, which suggest more upside in upcoming days.
Looking at daily chart, we can see an impulsive five-wave drop from 1.6155 highs and in EW theory, after every five waves, a three-wave (A)-(B)-(C) correction follows. As you can see, EURCAD also broke a channel resistance line, which was tested as a support and this is just another reason for a bullish setup. Corrections usually retrace back to around 61,8% Fibonacci retracement and a previous wave (4), whre would be ideal resistance level, so we are tracking that third wave (C) up, which has room for 1.5700 level.
Looking at 2-hour chart we can clearly count five waves up from 1.4817 lows, which suggest a bullish reversal and the most importantis that we saw only a three-wave A-B-C drop back to ideal previous wave 4 and 1.5120 support level last week, which means that it was only a correction within uptrend. That said, five waves up and three waves down is a perfect bullish setup pattern. Another evidence that EURCAD can be on it's way higher is five blue subwaves up, so sooner or later we can expect higher levels towards 1.5700, but maybe after a small a-b-c correction back to 1.5245 previous wave iv support.
Support at 1.5120 should hold, but we remain bullish as long as it's trading above 1.4917 invalidation level.
Good luck and trade well!
We have noticed a recognizable pattern with pretty clear wave structure, which suggest more upside in upcoming days.
Looking at daily chart, we can see an impulsive five-wave drop from 1.6155 highs and in EW theory, after every five waves, a three-wave (A)-(B)-(C) correction follows. As you can see, EURCAD also broke a channel resistance line, which was tested as a support and this is just another reason for a bullish setup. Corrections usually retrace back to around 61,8% Fibonacci retracement and a previous wave (4), whre would be ideal resistance level, so we are tracking that third wave (C) up, which has room for 1.5700 level.
Looking at 2-hour chart we can clearly count five waves up from 1.4817 lows, which suggest a bullish reversal and the most importantis that we saw only a three-wave A-B-C drop back to ideal previous wave 4 and 1.5120 support level last week, which means that it was only a correction within uptrend. That said, five waves up and three waves down is a perfect bullish setup pattern. Another evidence that EURCAD can be on it's way higher is five blue subwaves up, so sooner or later we can expect higher levels towards 1.5700, but maybe after a small a-b-c correction back to 1.5245 previous wave iv support.
Support at 1.5120 should hold, but we remain bullish as long as it's trading above 1.4917 invalidation level.
Good luck and trade well!
Comment:
As expected, EURCAD is moving nicely higher within five waves up for wave (C) towards 1.5700 level.
