COULD NZDCAD OFFER SIGNIFICANT LONG TERM UPSIDE MOVE?Hi Traders,
The 4-hour chart of NZDCAD shows a bullish move from October 2018 as a classic five-wave impulse in wave (A) "black."
According to the Elliott Wave theory, a three-wave correction in the opposite direction follows every impulse pattern. And indeed, the rest of the chart reveals an A-B-C zigzag correction in wave (B) that rejected the 38.2 Fib ratio and support level so far.
.
If this count is correct, there is a complete 5-3 cycle to the upside, and this means another five-wave bullish impulse can be expected in wave (C) from now on.
.
Given that the bulls already made the first impulse in wave 1 of (C), and we have a three-wave a-b-c regular flat pattern in wave 2 of (C) that reversed from 78.6 Fib ratio, a bullish continuation is expected in 3 of (C) whose potential target lies between 1.618 - 2.618 as planned on the chart.
.
The Friday's bullish engulfing candle on the Daily chart further confirm the completion of wave 2 correction and could be used as a signal to enter the bullish setup.
Safe Trading!
Veejahbee.
