What can traders expected from the USD/CAD currency pair?
Today’s article analyses multiple time frames and tools as we look for the best trading opportunities available this week.
Wave 5 is Around the Corner
The USD/CAD currency pair is in an uptrend as the chart below shows. We see that the pair is currently in a wave 4, which usually consists of a corrective ABC pattern.
I think it’s now in wave C of wave 4 waiting for confirmation to start wave 5.
Here are the 4 main conclusions:
- Typical Fib count of ave 4 is 38.2 %, 50% or 61.8% of wave 3.
- Wave 4 never moves into the price territory of wave 1, thus I think that the maximum correction is around 50 % at 1.2724. to 1.2693.
- We are looking for a reversal signals at 38.2 % or 50 % Fibonacci level.
- Traders should first wait for more confirmation before trading the anticipated wave 5.
Our main target of wave 5 is -27.2 % Fibonacci level around 1.3156 as wave 5 often goes beyond Wave 3 .
USD/CAD 4 Hours Chart Using SWAT Software
Now it’s time to use the SWAT charts to pinpoint potential trade setups within the expected wave structure and patterns.
As explained in the first paragraph, I am only looking for the start of wave 5 at the moment… I am waiting for a price bounce at any of the Wize levels to set our buy setup.
Here are the developments we need to see on SWAT software to set our position:
- A bounce signal around Wizz level 4 and the 144 EMA which match with the wave analysis as it will not go into wave 1 range.
- For more confirmation price must break the 21 EMA with a strong bullish candle.
- Our target will be -27.2 % Fibonacci level or we can use a trailing stop.
As I conclusion we are looking for the buy signals only and traders should avoid trading the sell opportunity for the moment as wave 4 is close to finishing.