USD/CAD – Fibonacci meeting at 1.310 Levels

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Elliott wave analysis 15-03-18

USD/CAD Elliott Wave Structure is possibly revealing a Flat Pattern which seems to align with the Fibonacci measurements approximately around the 1.310 Level.

The big picture points towards the fact that USD/CAD has started a larger degree Correction labeled as Cycle Wave IV (green).

 

USD/CAD –Weekly Chart:

Elliott wave analysis 15-03-18 weekly chart

 

Elliott Wave Long-Term Analysis:

  • 18th Jan 2016 until 2nd May 2016 – The sell-off was is labeled as Intermediate (W) (red).
  • 2nd May 2016 until 1st May 2017 – Previous sell-off was corrected slowly for an entire year, this leading towards labeling the Channeling Complex Corrective as Intermediate (X) due to time cycles.

Moving in for a closer look, one may see that after the Complex Double Three in Intermediate (X) (red), the Bears gained control once more and continued the down-trend. This bearish Swing is labeled as Minor A (red).

 

USD/CAD –Daily Chart:

Elliott wave analysis 15-03-18 Daily Chart

Minor A (red) finalized on 8th Sep 2017 and the Corrective Structure of Minor B (red) commenced, which is labeled as a Flat Pattern.

 

Minor B (red) Elliott Wave & Fibonacci Analysis:

  • Flat Pattern is pointing towards the 61.8 Fibonacci Retracement of Minor A (red), which also coincides with the 100% Fibonacci Extensions of Minutes w & x (purple), but also with the 150-161.8% Fibonacci Extensions of Minuettes (a)&(b) (orange), projected levels of Minuette (c) (orange).
  • For this scenario to be taken into consideration, the Fibonacci Levels would be accompanied by a Bearish Divergence.

 

Bearish Levels in focus:

  • Moderate – 1.3100 with Invalidations @ 1.3400
  • Conservative – 1.3330 with Invalidations @ 1.3600

Projected Levels – 1.2800 / 1.2500 / 1.2200 / 1.1900 / 1.1600

*The present analysis is to be treated as simple market commentary and not as an investment advice or as a solicitation to trade. Please be aware of the real risk involved by trading financial instruments.

 

Many pips ahead,

RT

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Richard is passionate about technical analysis with years of charting experience under his belt. When it comes to his insights and how he analyses the markets, he uses leading analysis tools. In particular, Elliott Wave Analysis is his forte, and he dedicates the majority of his time using this analytical method. Richard uses Elliott Waves in combination with Structures, Patterns, Divergences, and then spices things up with Vibration Levels, Fibonacci measurements, Channeling, Break-outs or Flag formations.

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Richard is passionate about technical analysis with years of charting experience under his belt. When it comes to his insights and how he analyses the markets, he uses leading analysis tools. In particular, Elliott Wave Analysis is his forte, and he dedicates the majority of his time using this analytical method. Richard uses Elliott Waves in combination with Structures, Patterns, Divergences, and then spices things up with Vibration Levels, Fibonacci measurements, Channeling, Break-outs or Flag formations.

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