We expect to see prices correct north to 50%fib on previous downtrend impulse.
USDCAD has been lagging to give us this uptrend for a while now, in correlation with USDJPY and USDCHF. However, I expect to see prices rice from this point of validation.
USD/CHF gave us impulse, it is well known that correction follows soon after impulse. But the main question we have to ask ourselves is "will the market correct any further than this or shall we see impulse resume?'"
Impulse - Correction - Impulse
The answer to that is to follow the cycle, waves tell us something different, we expect to see further correction...
We are hoping to see an upside move from AUD/USD, price rests at 50MA support.
A breakout from current channel invalidates our predictions, whereas a breakup above 0.7819 validates our publication.
Pay close attention to price action on lower timeframe.
Major trend is made of 12345 waves of impulse, at the end of final 5th wave we notice a change in direction with a breakout confirmation above upper borderline.
We expect to see prices pullback to give us retest at 50%fib, our validation level, invalidation level is at 5th wave.
Today EURUSD is up 700pips,
Market has hit major historical level, we may see prices fall from this level and give us a pullback to retest 61.8 level after previous breakout.
This level provides an opportunity for new buy entries and scaling up of existing positions form swing traders whom have been holding the trade.
On lower timeframe we are looking for a sell...
GOLD BREAKS ABOVE MAJOR BORDERLINE TO COMLPETE 3RD WAVE
AT RESISTANCE LEVEL
CORRECTION (4TH WAVE) FOLLOWS IMPULSE (3RD WAVE)
IN THIS STRUCTURE CORRECTION ALSO = PULLBACK-RETEST
THE IDEA IS TO BUY 5TH AND FINAL IMPULSIVE WAVE OF 12345 ELLIOT WAVE COUNT.
BUY THE BEST POSSIBLE LOW PRICE MARKET HAS TO OFFER.
Friends, what do you think about CAD/JPY?
a. will the market break above borderline after four attempts? or
b. is this level still strong enough to withhold pressure and keep the market trending within the channel?
1st channel = long term trend.
2nd channel = 9 months (249d) trend, 42 bars.
A or B
At this point we assume that the market has completed the diagonal in the 5th wave, and make the first wave of a new trend.
Market is correcting wave 2, giving us time to marshal resources for upcoming impulse wave (3rd wave).
We assume that bulls will come in and buy discounted prices around historical support level (1.2770), end of 2nd correctional wave.
In the previous publication, we had predicted that wave B of the ABC correctional wave will correct up to 61.8 but instead correction moved above 61.8 to retest 78.6 fib.
Structure is still the same, we sold final wave C of ABC correction.
Market broke below 50MA , more confirmations on direction.
SEE PREVIOUS POST OR RELATED IDEAS BELLOW