EUR/CAD has carved out a clear 5-wave impulsive structure with a completed Wave 1 and Wave 3. Wave 2 was a sharp correction, while Wave 4 has been more sideways—just as the Elliott Wave guideline of alternation would suggest.
Now, Wave 4 found support right at the 38.2% retracement of Wave 3 (a common termination zone), and the next impulsive leg may already be in motion.
Why do I say that?
Because price has carved out a textbook leading diagonal for what may be the first wave of Wave 5, followed by a complex W–X–Y correction. And if that wasn’t enough—the Y wave looks to have formed a triangle.
Breakouts from triangles are rarely small moves.
Now, Wave 4 found support right at the 38.2% retracement of Wave 3 (a common termination zone), and the next impulsive leg may already be in motion.
Why do I say that?
Because price has carved out a textbook leading diagonal for what may be the first wave of Wave 5, followed by a complex W–X–Y correction. And if that wasn’t enough—the Y wave looks to have formed a triangle.
Breakouts from triangles are rarely small moves.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.