For my previous post and context see link below: I had another look at USDCAD and I simply don't like the correction to be over at the moment due to several characteristics. So I made two scenario's where I prefer the bullish one for now because I really like to see 1.34ish tested before it should be ready to go down again. This analysis and wave count can be seen in the original post. The analysis below is my bearish alternate analysis.
so what's the plan? It is relatively simple, we see a bullish impulse at the moment on the 1 hour time frame which can either be the start of a move towards 1.34 or the start of a correction after the first impulse lower that suggest more bearish momentum to be next. Nevertheless nothing moves in a straight line so waiting for a consolidation on 1 hour time frame and buying the continuation means that you either buy a wave C higher or a wave 3 higher. Depending on your bias you can determine how long you would hold this position. I personally favor a test of 1.34ish but it is too soon to tell yet. Either way buying from the 1hr time frame after a consolidation seems like a good idea.
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USDCAD has a decision to make. When using trend lines for continuation trades, look for a 1-2-3 pattern, only then the trend line is correct, until that moment the trendline can chance over and over again or be ignored all together.
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LongBreak
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how far y see .. 1.306+
TimStuyts
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I still favor my preferred scenario for that new high at 1.330-1.338 until proven otherwise, both my buy positions of Friday and today are at break even. I will focus on USDCAD, EURUSD and AUDNZD for the week until proven otherwise. But don't focus too much on the levels, those are only indications for context. Focus on the structure and adjust when necessary.
LongBreak
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th
glaazie
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i see a short term sell setup right now after that i also expect bullish price action before the next big drop :)
ezodisy
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Thanks Tim. Do you still have a bullish bias on eur/cad?
TimStuyts
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Good question, that pair still shows all characteristics of a consolidation but the move up from 1.4246. I didn't update that pair because it might be too confusing in terms of what I'm looking for. But for now I still favor a move towards 1.50 as long as price doesn't take out the low at 1.4246. If it does take out that low I will re-evaluate because then the structure and inner waves don't line up which would be a reason for me not to trade it.