Two reasons to consider the USDCAD in downtrend. Short

U.S. Dollar/Canadian DollarFXCM

Description

⋅ Jul 16, 2016 6:59 AM

Two reasons to consider the USDCAD in downtrend.

1. This is last wave (Elliot Wave 5) of Basic Motive Phase.

2. Then here begin a first wave (Elliot Wave A) of Corrective Phase.

3. This is second wave (Elliot Wave B) of Corrective Phase.

Note: This wave have inside two Elliot Wave.

a) Bull Market Truncation (Red Color and Completed)
b) Elliot Wave Basic (Blue Color and not Completed)

4. This is corrective wave (Elliot Wave B) of Corrective Phase.

Note: This corrective wave has already started, missing the wave B (Uptrend) and C (Downtrend).

This is the SECOND reason to consider that the price will be BEARISH.

5. This is last wave (Elliot Wave C) of Corrective Phase.

This is the FIRST reason to consider that the price will be BEARISH.

Comments

ganjingzhi

⋅ Jul 17, 2016 7:43 AM

Hi, appreciate your work. However, I disagree with you. According to your drawing, wave 4 overlaps with wave 1. Therefore, I don't think this pattern is applicable to Elliott wave. Furthermore, USDCAD has negative correlation with crude oil price. Crude oil is gonna drop and USDCAD will soon shoot up.

josegarglex

⋅ Jul 17, 2016 4:00 PM

Thank you for your comments and good trading.

stream

⋅ Jul 16, 2016 7:40 AM

My reasons are much more simple , but confirm yours . I fully agree with you

Good luck !

josegarglex

⋅ Jul 16, 2016 7:41 AM

Thank you! And good trading