Aleksandar Vichev
EWM Interactive
A five-wave impulse followed by a three-wave correction is what every Elliottician is looking for. It seems that we have found one such pattern on the hourly chart of EURCAD.
According to the Elliott Wave Principle, the prices of financial instruments move in “waves” as follows: five waves in the direction of the larger trend and three waves against it. The chart above appears to be showing what we are talking about. You can see the impulsive wave structure of the decline from 1.4266 to 1.3953, as well as the corresponding retracement to the upside, which is still currently in progress. This means, that the 5-3 cycle should soon be completed and the downtrend could resume. If this count is correct, EURCAD should be expected to go south with minimum targets below the bottom of 1.3953. This scenario would be invalidated, if the euro climbs up above 1.4266 against the Canadian dollar.
Trading financial instruments entails a great degree of uncertainty and a variety of risks. EMW Interactive’s materials and market analysis are provided for educational purposes only. As such, their main purpose is to illustrate how the Elliott Wave Principle can be applied to predict movements in the financial markets. As a perfectly accurate method for technical analysis does not exist, the Elliott Wave Principle is also not flawless. As a result, the company does not take any responsibility for the potential losses our end-user might incur. Simply, any decision to trade or invest, based on the information from this website, is at your own risk.
Recommended Content
Editors’ Picks
AUD/USD: Further losses retarget the 200-day SMA
Further gains in the greenback and a bearish performance of the commodity complex bolstered the continuation of the selling pressure in AUD/USD, which this time revisited three-day lows near 0.6560.
EUR/USD: Further weakness remains on the cards
EUR/USD added to Tuesday’s pullback and retested the 1.0730 region on the back of the persistent recovery in the Greenback, always against the backdrop of the resurgence of the Fed-ECB monetary policy divergence.
Gold flirts with $2,320 as USD demand losses steam
Gold struggles to make a decisive move in either direction and moves sideways in a narrow channel above $2,300. The benchmark 10-year US Treasury bond yield clings to modest gains near 4.5% and limits XAU/USD's upside.
Bitcoin price dips to $61K range, encourages buying spree among BTC fish, dolphins and sharks
Bitcoin (BTC) price is chopping downwards on the one-day time frame, while the outlook seen in the one-week period is a horizontal trade. In this shakeout moment, data shows that large holders are using the correction to buy up BTC.
Navigating the future of precious metals
In a recent episode of the Vancouver Resource Investment Conference podcast, hosted by Jesse Day, guests Stefan Gleason and JP Cortez shared their expert analysis on the dynamics of the gold and silver markets and discussed legislative efforts to promote these metals as sound money in the United States.