EURCAD rose fast yesterday after a weakened CAD. Price rose yesterday after it completed an impulse which I wasn’t able to update you about. It was a very clear one and impulse wave fans would have taken this bullish drive without any doubts. It seems the rally is a corrective move within a larger corrective wave downside. The following takes us closer to what price might do in the coming days based on 19 September EURCAD Elliott wave analysis and forecast.
We have sometimes seen how price reacts to impulse waves, haven’t we?. Especially an impulse wave that ended with a clear reversal pattern.
There is a larger degree double zigzag projected to be completed downside at 1.40-1.41. Price stormed a strong resistance zone and could just reverse if the resistance holds. The resistance zone stays between 1.468-1.4810 and an upward or downward breakout would mean something important. If price breaks downward, a good bearish opportunity will surface with targets at 1.445, 1.43, 1.42 and 1.40. A break above 1.481 will terminate this idea and see price surge toward 1.508.
Sell entry at 1.460.
Stop loss at 1.481
Target 1 at 1.445
Target 2 at 1.43
Target 3 at 1.42
Final target at 1.40.
NB: Idea invalid if price breaks above 1.481 instead.
Trader’s discretion applies.
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