USDCAD in an expanded flat corrective pattern
The Loonie appears to have finished off the 'b' wave of an a-b-c expanded flat. The potential ensuing 'c' wave would likely take prices down into the 1.07 handle.
If you zoom into a 15 minute chart and focus on the Sept 9-10 price high, you can see prices have established a 5-3 wave sequence lower which suggests a temporary top is in place.
The larger trend on the daily chart is still up as it appears the yellow 5 wave sequence finished a larger trend red wave (1). This 'c' wave lower, if the labeling is correct, would finish off red wave (2) in the 1.07 handle then set the table for another booming rally. We're not getting greedy and looking to take profits near 1.0810 which gives us a good risk to reward ratio short trade.
Short EUR/CAD or short GBP/CAD could be other good candidates to take advantage of CAD strength.
If you zoom into a 15 minute chart and focus on the Sept 9-10 price high, you can see prices have established a 5-3 wave sequence lower which suggests a temporary top is in place.
The larger trend on the daily chart is still up as it appears the yellow 5 wave sequence finished a larger trend red wave (1). This 'c' wave lower, if the labeling is correct, would finish off red wave (2) in the 1.07 handle then set the table for another booming rally. We're not getting greedy and looking to take profits near 1.0810 which gives us a good risk to reward ratio short trade.
Short EUR/CAD or short GBP/CAD could be other good candidates to take advantage of CAD strength.
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www.seethewaves.com - A school to learn how to read charts & Elliott Wave Theory.
EW Express - bit.ly/elliottwaveexpress