Canadian Dollar: Potential Bullish Butterfly at 50% Retracement
Updated
I am looking for a buy in the PRZ shown based on the bullish Butterfly pattern as well as 50% retracement level.
From an Elliot Wave perspective, if the move up from the recent bottom was all a first wave then this is the minimum retracement I would expect for the second wave. In this case we are getting ready for Wave 3 which would likely be pretty amazing.
This was also previously a supply zone which now could be turned to demand, if you believe that sort of thing (I am not too sure about it myself).
My stop loss for the butterfly is below the 1.414 extension, shown by the red horizontal ray. However if I am stopped out I will likely still look for chances to long from lower, perhaps based on a larger bullish pattern, unless there is a strong move down before then.
This will be a continuation of my previous CAD trade which I have linked below. I will be looking to employ the same strategy as in that idea once price reaches the PRZ, and still optimistic that bull flag will break up someday!
From an Elliot Wave perspective, if the move up from the recent bottom was all a first wave then this is the minimum retracement I would expect for the second wave. In this case we are getting ready for Wave 3 which would likely be pretty amazing.
This was also previously a supply zone which now could be turned to demand, if you believe that sort of thing (I am not too sure about it myself).
My stop loss for the butterfly is below the 1.414 extension, shown by the red horizontal ray. However if I am stopped out I will likely still look for chances to long from lower, perhaps based on a larger bullish pattern, unless there is a strong move down before then.
This will be a continuation of my previous CAD trade which I have linked below. I will be looking to employ the same strategy as in that idea once price reaches the PRZ, and still optimistic that bull flag will break up someday!
Note
Looking to short the completion of the bearish AB=CD @0.74275
Note
Things have changed. I am currently looking for the Canadian Dollar to drop further, at least .73365, which is the .618 retracement as well as the completion of a bullish bat pattern and 1.272 extension of the supposed "A" wave.
If the opportunity presents itself I will look to short around 0.7423 with my stop above 0.745 and that as my target.
Note there is a larger bullish bat pattern which completes at 0.728 which I will be interested in taking instead if the price action is still strongly bearish at the first PRZ.
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