Long confluence ahead USD/CAD
Apologise for the messy chart but there does seem to be a lot going on here which quite excites me, lets dive in.
Macro ABC corrective structure seems to have completed after a rather strong and solid 12345 motive wave.
* New motive structure in the making looks to have completed wave 1 and soon looks to complete wave 2 as a micro corrective structure soon to come to an end. Targeting the sell off to finish once 38.2 weekly fib level is touched, for the beginning of wave 3 to begin for massive gains up to the 161.8 fib extension, to form an extended wave 3.
* Rounding bottom leading to an inverse H&S pattern likely as USD/CAD characteristically loves inverse H&S patterns, across all bar the 1 & 5 Min TFs. Extrapolation of the inverse H&S pattern completion takes us just above 161.8 fib extension of our projected wave 3. The R Shoulder would also typically form where our projected wave 2 would finish at the 38.2 fib, where on the chart it would look appropriate and probable.
* Weekly 200MA has turned down which price action will follow briefly as it previously has done again taking us down to the relevant fib levels.
* Weekly RSI still have room to move down + descending wedge pattern has formed on the indicator potentially signalling a new uptrend.
Overall I see a bullish future for USD/CAD;
* limit buy to be placed in the middle of green box outlined, once a bounce off 38.2 fib is achieved.
* SL placed below weekly spike levels and then below 200MA
* TP1 - 1.4000, TP2 - 1.4707, TP3 - 1.5190
Factors to negate theory;
* flush and aggressive break below outlined wave 1 (note theory still valid until 88.6 fib level of wave 1 broken)
* double corrective pattern formed for further downside
Macro ABC corrective structure seems to have completed after a rather strong and solid 12345 motive wave.
* New motive structure in the making looks to have completed wave 1 and soon looks to complete wave 2 as a micro corrective structure soon to come to an end. Targeting the sell off to finish once 38.2 weekly fib level is touched, for the beginning of wave 3 to begin for massive gains up to the 161.8 fib extension, to form an extended wave 3.
* Rounding bottom leading to an inverse H&S pattern likely as USD/CAD characteristically loves inverse H&S patterns, across all bar the 1 & 5 Min TFs. Extrapolation of the inverse H&S pattern completion takes us just above 161.8 fib extension of our projected wave 3. The R Shoulder would also typically form where our projected wave 2 would finish at the 38.2 fib, where on the chart it would look appropriate and probable.
* Weekly 200MA has turned down which price action will follow briefly as it previously has done again taking us down to the relevant fib levels.
* Weekly RSI still have room to move down + descending wedge pattern has formed on the indicator potentially signalling a new uptrend.
Overall I see a bullish future for USD/CAD;
* limit buy to be placed in the middle of green box outlined, once a bounce off 38.2 fib is achieved.
* SL placed below weekly spike levels and then below 200MA
* TP1 - 1.4000, TP2 - 1.4707, TP3 - 1.5190
Factors to negate theory;
* flush and aggressive break below outlined wave 1 (note theory still valid until 88.6 fib level of wave 1 broken)
* double corrective pattern formed for further downside
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