USDCAD is most probably in wave C of wave 2 or B which might have completed or may go one more leg down, we are expecting the market to move up and are assuming that this will be a simple ABC pattern (zig zag) or an Impulse (12345)
If the wave count is correct then in both scenarios we are expecting price to move up as wave C or 3, Remember volume is the key indicator here as it will help distinguish wave C from Wave 3, so keep an eye on it
We will enter trade once price breaks above the blue trend line, aggressive traders can enter trade as of now or at FIb .618 of previous leg
On the daily chart candlestick formed a Hammer indicating trend reversal which also gives confidence to this trade
Let see how this plays, Good Luck !
Disclaimer: This is for informational purposes only, anyone taking trades using this idea will be liable of their own loss
If the wave count is correct then in both scenarios we are expecting price to move up as wave C or 3, Remember volume is the key indicator here as it will help distinguish wave C from Wave 3, so keep an eye on it
We will enter trade once price breaks above the blue trend line, aggressive traders can enter trade as of now or at FIb .618 of previous leg
On the daily chart candlestick formed a Hammer indicating trend reversal which also gives confidence to this trade
Let see how this plays, Good Luck !
Disclaimer: This is for informational purposes only, anyone taking trades using this idea will be liable of their own loss
Comment:
As mentioned in my previous comment below is the scenario of further correction as double Zig Zag, corrective structures are the hardest to predict as there are multiple types of corrective structures
We are expecting price to retest the blue trend line and bounce back breaking the swing high which will be the entry point
Alternately price may move down testing the .618 level Fib further expanding the corrective structure as a double zig zag
We will remain bullish on this trade until last low ( stop loss marking) is taken out