USDCAD has been trading in a zigzag structure (channel) with higher highs and higher lows on daily timeframe. It has reached a horizontal resistance zone.
we can notice a WXYXZ Elliot structure, with ABC patterns in every impulse and X correction after it (11 waves in the channel). USDCAD is close to the end of the last extended wave C: we can notice in it 12345 Elliot waves structure. With Fibonacci extensions, wave 5 can reach 1.335 (or the rectangle we draw based on the fib extension).
However, a head and shoulders pattern is recognized on m30, waiting for USDCAD to break the neckline with a candle closing below it to take the sell.
Be careful with your risk management, the last extended wave can still reach 1.25 fib extension before ending.
Goodluck everyone,
Joe.
we can notice a WXYXZ Elliot structure, with ABC patterns in every impulse and X correction after it (11 waves in the channel). USDCAD is close to the end of the last extended wave C: we can notice in it 12345 Elliot waves structure. With Fibonacci extensions, wave 5 can reach 1.335 (or the rectangle we draw based on the fib extension).
However, a head and shoulders pattern is recognized on m30, waiting for USDCAD to break the neckline with a candle closing below it to take the sell.
Be careful with your risk management, the last extended wave can still reach 1.25 fib extension before ending.
Goodluck everyone,
Joe.