Update to USD/CAD - price action favouring further downside
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See notes on chart - previous idea showing that value of UC should be higher is now no longer true. I have tried to explain accumulation. Classic price action would be a gardual up move (usually in waves of 3) with higher highs and lower lows (can see better on 15 or 30 min chart) then a failure to make a new high and then break lower. So why would this happen? It has absolutely nothing to do with elliott waves , fibonacci or other pattern recognition analysis, it all has to do with instituional banks getting the size they need to push lower. For institutions to sell they need BUYERS and this is how they get buyers to enter the market. Institutions trade with HIGH volume and they need traders to trade with. In this case they will cap any lower movement to get buyers into the market. When they have enough size you will see this as the price will fail to make a new high which will be a signal to the market maker and then you will see a rapid spring to the downside below this accumulation zone. If this was short covering a more powerful retracement would have been seen from current levels.
See notes on chart - previous idea showing that value of UC should be higher is now no longer true. I have tried to explain accumulation. Classic price action would be a gardual up move (usually in waves of 3) with higher highs and lower lows (can see better on 15 or 30 min chart) then a failure to make a new high and then break lower. So why would this happen? It has absolutely nothing to do with elliott waves , fibonacci or other pattern recognition analysis, it all has to do with instituional banks getting the size they need to push lower. For institutions to sell they need BUYERS and this is how they get buyers to enter the market. Institutions trade with HIGH volume and they need traders to trade with. In this case they will cap any lower movement to get buyers into the market. When they have enough size you will see this as the price will fail to make a new high which will be a signal to the market maker and then you will see a rapid spring to the downside below this accumulation zone. If this was short covering a more powerful retracement would have been seen from current levels.
Comment:
sorry that should read higher highs and higher lows!