The decline from the Feb.’18 high of 1.2555 is identified as a counter-trend pattern (a)-(b)-(c) that ended primary wave 1(circle) from the early Jan.’17 rally. Since then, prices dropped rapidly to the late Aug.’18 low of 1.1301 whilst unfolding into a five-wave expanding-impulse pattern (a). Evidence of a five-wave impulse is usually enough to confirm...
The picture is very clear as we can see that gold has completed a cycle of 5 wave and now is forming the zig zag correction A-B-C(5-3-5). Although the perfect opportunity to sell has been finished but look out for bigger pullbacks to enter short term position in gold
Now this is the bigger picture, as we all can see very clearly that a weekly flat(abc-335) structure has been completed, so there is a great potential for the price to go down in 5 wave structure. This is a great opportunity to enter short term position in USD/CAD.
In the chart above I draw what I found at DISCA chart, really strong bullish Fibo Cluster, where 3 types of analyses meet each other:
1) Elliott cycles - from 31 December 2013 to 16 November 2017 there was a bearish downtrend, long correction of the previous cycle, but it was completed on 16 November 2017 and next bullish cycle had started....
if first blue A-B-C = (A) or (W), second blue A-B-C=(B) or (X), then we can expect wave (C) or (Y) to follow.
e.g. Green 1-2-3-4-5 = (C) or pink A-B-C = (Y)
We know that
Wave (C) of a flat usually between 100% and 165% as long as wave (A)
Wave (Y) of a double zigzag often about the same length as wave (W) (or common Fibonacci ratio o.618 or 1.618)
The price formed double top at fibo 1.618 level, created zig zag. B leg in larger degree is above invalidation level, which tells me that this pair could be bulish up to complete running flat in following days...
Long term bulish zig zag formation. Leg A has 5 subwaves, so expecting is that C leg would also form into 5 waves. In following days price would consolidate around 0.38 of fibo retrace, and price should going up.
Price still developing flat range of 3200 — 4300.
So we need to take advantage of it, and take entries as low as possible inside it and place your take profits in range of 4100-4300-4600.
Spread your position size inside 3200-3300-3400-3500 range.