Small SELL Followed By Major BUY (Elliot Waves)
For USDCAD in the Grand Major Time-frame, we can notice that we are currently in a corrective structure after a 5 wave move to the downside. The corrective structure seems to be unfolding in a Triangle Corrective Structure. Triangles either have a 5-3-5-3-5 or 3-3-3-3-3 structure. In this case we seem to be doing a 5-3-5-3-5 structured Triangle. Within the Triangle we seem to be in its last Leg which is Leg E. I anticipate Leg E to complete in a 5 wave move to the upside to complete the Triangle Corrective structure
On a smaller time frame we are still in the midst of completing Wave 1 of Leg E. Wave 1 seems to be unfolding as a Diagonal. Within that Diagonal Structure we seem to be in its Minor E Leg which is its last Leg. From this point we may see a light push up to complete Minor Leg E which would mean the completion of Wave 1, and then followed by a deep retracement for Wave 2 (up to 61.8-71.4% of Wave 1) and finally for the Major BUY on Wave 3.
This analysis is based on the weekly time frame and just to give a general outlook for this pair for the longer term. However this may take months to unfold. I feel its a good point to be looking for BUYS as soon as we see any retracements (after Wave 2). This is because our invalidation point is would be just below the trendline giving us a potential good risk to reward trade.
On a smaller time frame we are still in the midst of completing Wave 1 of Leg E. Wave 1 seems to be unfolding as a Diagonal. Within that Diagonal Structure we seem to be in its Minor E Leg which is its last Leg. From this point we may see a light push up to complete Minor Leg E which would mean the completion of Wave 1, and then followed by a deep retracement for Wave 2 (up to 61.8-71.4% of Wave 1) and finally for the Major BUY on Wave 3.
This analysis is based on the weekly time frame and just to give a general outlook for this pair for the longer term. However this may take months to unfold. I feel its a good point to be looking for BUYS as soon as we see any retracements (after Wave 2). This is because our invalidation point is would be just below the trendline giving us a potential good risk to reward trade.