The last surge of USDCAD does not fit a standard 5 wave count. This leaves us with an ABC pattern (refer to yellow ABC pattern on the drawing). If this is the case, is this ABC pattern complete? There are some convincing factors which makes one believe that it could be the end of the ABC, thus end of this highly fast advance of the USD against CAD. These factors are:
-50% Fibonacci
-Two trendlines cross (yellow dotted lines)
-major resistance area (red box)
-ABC wave count from major 4th wave
-Could be the correctional B wave of major wave 4
We need to wait and see if this scenario unfolds. If so, it could be a very good point for a short entry position (provided there is a convincing bear signal).
-50% Fibonacci
-Two trendlines cross (yellow dotted lines)
-major resistance area (red box)
-ABC wave count from major 4th wave
-Could be the correctional B wave of major wave 4
We need to wait and see if this scenario unfolds. If so, it could be a very good point for a short entry position (provided there is a convincing bear signal).