We may be witnessing a Head and Shoulders formation. It is still early to judge though. The volatility is still to high. This morning there was a fast upsurge, which did not hold, but answered only by a same strength of downfall. This means extreme volatility, indecisiveness on part of traders. Oil may show a short term recovery quite soon, judging from technicals...
Oil prices are at a significant resistance. We don't know how long it's going to hold at this point. At 1hour chart we can clearly see a triangular formation, with higher odds that the price will advance to upper trend line. Oil prices advancing always help Canadian Dollar. If you are trading USD/CAD, we would not recommend to go long at this very moment or short...
Following is the moral of the story: we followed the following guidelines 1-We have identified High Volatility at the peak of USDCAD pair, which may indicate market turn. 2- High volatility both in lower and higher time frames. This condition usually causes consolidation channels 3- Having consolidation channels are fantastic to trade at channel frequencies....
Target 1.285. Will be a quite choppy retrace.Needs to complete 4th. No one can tell when. Patience required.
This volatility is not only at lower Time Frame (TF) levels but also at higher TF levels, which means that we have "EXTREME VOLATILITY". Why is it so? Even reading comments in this website, I see so many contradicting opinions coming from many people at the same time. No one knows exactly what to do it seems. There is greed and fear ruling the traders. Some of...
This is one alternate Elliott wave count. Also notice the Cup and Handle. This pattern may suggest an extended and profitable 5th major wave from the base of 4th major (blue line) I would strongly encourage opinions. Please post your own alternate wave counts and patterns. Note that the expanded lines are generic (does not necessarily mean where waves will end)
But, USDCAD did not quite follow. Could mean that USDCAD is extremely overbought already. Oil is touching a significant resistance and wave 3 is bound to complete soon. This fact indicates that a correction in USD/CAD bull trend may be due shortly.
Here are some notes: -Highly volatile market. (due to recent high volume speculation on this pair) -Head and Shoulder formation clearly invalidated by the breakout of the neckline -Many TF Wave counts indicate the end of cycles one way or another -Price touching the upper lines of important trend channels -Divergence on multiple MACDs indicate exhaustion -and the...
In our last analysis we mentioned about the pullback behavior of an H&S pattern and highlighted it with generic red lines (refer to chart). At this moment, this pullback really occurred and occurred fast (one of the characteristics). Now the obvious question. Will it hold and will the price go down from this point. Let's look at some factors: 1- Usually H&S...
We were quite accurate on this trend change. When there is high volatility on a strong trend with other indications combined, one can say that the trend is exhausted. This phenomena can be witnessed in various markets with high degree of accuracy. Now for today's analysis. We see a Head and Shoulders formation which already broke the H$S trend line. A possible...
EXTREME VOLATILITY is one of the typical indications to highlight the end of Trends. Usually accurate and indicates indecisiveness among traders thus wild moves. Right time to close long positions. Prices just above the 1.30833 line (which is a very significant Resistance) shall not be considered a clean breakout under current circumstances. Just look at the...
If this scenario occurs, then there could be a very good opportunity to enter long into USD currency pairs on the USD side. Also this scenario correlates with our USDCAD retracement scenario (refer to USDCAD analysis)
This is the line which would challenge the Bulls a great deal in my opinion. There is lots of enthusiasm to make more quick buck on going long on USDCAD by some traders, however common sense and over 15 years of experience looking at charts tells us that a Resistance of that importance can NOT be easily broken , at least NOT at first trial, like where we are...
As shown on the chart for 100 pips or more
What does it mean? We shall have a correction most likely upto 1.25-1.26 range and then the price may shoot up with vengeance. This would be the 3rd wave of the 5th major and a fantastic opportunity to long the pair. The wave count, S&R and trend lines are as indicated on the daily chart. Short sellers have a window of opportunity from 1.28 to 1.26. Count the...
Now it seems to be a good (at least more favorable) point to sell short USDCAD pair. A good Entry is crucial for a good trade and many things shall come together in order to execute it. One of the most important things is the "Thrust", which means a sharp drop (or rise in bull markets) in the direction we intend to trade, usually at lower time frames. This fact...
In our previous analysis we have cautioned not to short USDCAD, as there was strength with uncertainty. Today the price upsurge just proved that. In trading one shall always measure the strength and adapt accordingly. It is a well known fact that the markets mostly do the unexpected and usually opposite the popular belief. In this case many were expecting the...
We were waiting for a LONG Entry for the last two days flat and watching the price action. Two possibilities. 1- Price will retrace to 1.26 levels (on the chart refer to green rectangle) OR there will be a breakout of 1.28 strong resistance. What to do? The price action for the last 2 days indicates that there is large strength in USD (also against CAD). Also, OIL...