USDCAD, extended wave to end soonUSDCAD has been trading in a zigzag structure (channel) with higher highs and higher lows on daily timeframe. It has reached a horizontal resistance zone.
we can notice a WXYXZ Elliot structure, with ABC patterns in every impulse and X correction after it (11 waves in the channel). USDCAD is close to the end of the last extended wave C: we can notice in it 12345 Elliot waves structure. With Fibonacci extensions, wave 5 can reach 1.335 (or the rectangle we draw based on the fib extension).
However, a head and shoulders pattern is recognized on m30, waiting for USDCAD to break the neckline with a candle closing below it to take the sell.
Be careful with your risk management, the last extended wave can still reach 1.25 fib extension before ending.
Goodluck everyone,
Joe.
