Elliot Wave: NZDCAD Bearish Continuation Setup
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This is an update on the previous Daily setup shared a few weeks ago.
NZDCAD reversed and broke the S&R zone and ascending trendline impulsively in wave i.
According to Elliot Wave theory, impulse move is always followed by a three-wave correction. In NZDCAD's case, the short-term rally is currently taking the shape of a-b-c zigzag pattern in wave ii.
Price is contained within a parallel channel and also retesting a significant supply zone. While the retracement can entends to a complex corrective structure, we can take a short entry from the current market level as long as the protective stop is placed at the major invalidation level which is the red line on the chart.
What's your view on NZDCAD? Let me know in the comment.
Thanks for reading!
Veejahbee.
This is an update on the previous Daily setup shared a few weeks ago.
NZDCAD reversed and broke the S&R zone and ascending trendline impulsively in wave i.
According to Elliot Wave theory, impulse move is always followed by a three-wave correction. In NZDCAD's case, the short-term rally is currently taking the shape of a-b-c zigzag pattern in wave ii.
Price is contained within a parallel channel and also retesting a significant supply zone. While the retracement can entends to a complex corrective structure, we can take a short entry from the current market level as long as the protective stop is placed at the major invalidation level which is the red line on the chart.
- Price has the potential to move downwards towards wave (a) low in wave iii of (c).
- The break of the green lines can be used as a conservative entry.
- The major invalidation level is the red line on the chart.
What's your view on NZDCAD? Let me know in the comment.
Thanks for reading!
Veejahbee.