USDCAD Analysis

The weekly chart here showing the possible future movement of the dollar-cad. Price is currently still on the 2nd wave of the correction period; I'm expecting a push towards 1.38 (61.8% of the 1st correction wave & previous resistance) before the steady decrease towards the 1.2 area, retesting previous support, to complete the cycle. The 1.2 mark is also slightly above the 1.272 fib. extension of the first correction wave, possibly providing an excellent area for longer term traders to take up long positions upon completion an AB=CD pattern.

Comment:

Price is approaching the 61.8% retracement of the original correction wave.

Once this trend line is broken, I will take a short position and look to hold it until 1.25. A return of over 1000 pips!

Trade closed: target reached:

1.25 Target has been reached- Elliot Wave strikes again ;)