Hi Traders,
The 4-hour chart of EURCAD shows that the break out of descending wedge that lined up with a key resistance level is a five-wave impulse in wave (a).
.
According to Elliot Wave theory, a three-wave correction in the opposite direction follows every impulse pattern before a resumption in the direction of the trend.
.
We will wait for the completion of the corrective pattern, which is most likely retested the broken resistance that lined up with 50.0 Fib ratio and moving averages;
.
Then look for the breakout of the counter trend line for entry. Price has the potential to move up towards -27.0 Fib Extension to complete wave (c) of 2.
.
Safe Trading!
Veejahbee.
The 4-hour chart of EURCAD shows that the break out of descending wedge that lined up with a key resistance level is a five-wave impulse in wave (a).
.
According to Elliot Wave theory, a three-wave correction in the opposite direction follows every impulse pattern before a resumption in the direction of the trend.
.
We will wait for the completion of the corrective pattern, which is most likely retested the broken resistance that lined up with 50.0 Fib ratio and moving averages;
.
Then look for the breakout of the counter trend line for entry. Price has the potential to move up towards -27.0 Fib Extension to complete wave (c) of 2.
.
Safe Trading!
Veejahbee.