USDCAD: Watch For The ED!

USDCAD has made a strong advance to break out of the long term down trend it has been in for months, Does this move mean that the downtrend is over?

Well, one thing is for sure....this was a strong move up and out of that downtrend. This move certainly looks impulsive. If this is an impulse wave, then it follows that this has to be a wave (1) or (a). In any case, I do count a 5-wave move. And of course, following any completed 5-wave impulse wave comes a corrective wave,

So being that this impulse seems to be a completed, I am expecting a corrective wave back down. But before that can happen, this is what I am looking for: an ending diagonal. ED's are very common way for strong impulse waves to end. They occur often in wave 5's. And that is what I am seeing this impulse wave being in: a wave 5.

If/when this potential ED is completed, that would be a good place to take a SELL. Just be aware that there is nothing that says that there MUST be a completed ED for the reversal to occur.

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Commentaire:

ED is completed and prices have now broken down out of it.