Thread: FXTimes: Forex Trading Setup 10.27.2010 – Elliott Wave Count for EUR/CAD

Elliott Wave Count for EUR/CAD

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• Daily: The Daily chart was looking at a ABC correction. In Elliott Wave terminology it is a zig zag, and in classic patterns terminology it is a Gartley or ab=cd pattern. Forgive me for not using the most conventional labeling (A, a, (a) etc. you can get the drift to what scale I am looking at by looking at the charts)
• Wave (C) = Wave (A). Both were impulse waves.
• The alternate scenario is that wave (A) is actually a (I), and (C) is actually a (III).
• Both should share a correction, but wave (III) is more likely to see support at the previous pivot of 1.3710 area, which is also 50% retracement.
• In consideration of the alternate scenario, you may want to consider this your target for now, for the bearish outlook.
• Note RSI’s bearish divergence here. However, if the market fails to break below 1.40, there is a positive reversal and the wave (III) scenario is heightened.
• Therefore in the near-term, 1.40 is your target, and we should look at the intraday charts to monitor this.

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Fan Yang CMT
Currency Analyst
FXTimes.com

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Fan
FXTimes.com