USD/CAD developed a bullish momentum during April… It seems that this price action was developing a new bullish wave pattern: it started wave one and was followed by the correction of wave 2. Now I think that price is getting ready for bullish wave 3.
We will review different scenarios as the pair can either bounce for bullish wave 3 or expand the bearish momentum of wave 2.
This article will discuss the wave perceptive and expected scenarios for the pair during the coming days using wave pattern, support, and resistance and SWAT software.
The below chart shows that the pair developed a strong bullish momentum and then made a decent correction… In my view, the pair was developing a new 12345 wave pattern: the pair is in wave 2 but it could end this bearish wave soon and start a new wave 3.
And here are the main conclusions:
For the moment I expect a new bullish momentum for wave 3 but we still need more confirmation before trading this pair… In the next paragraph, we will discuss this development by using SWAT software.
Now it’s time to use the SWAT 4-hour chart to determine the entry points according to the expected wave patterns… SWAT Chart shows bearish momentum but some developments to confirm the bullish wave 3 starts… Here are the main developments to consider:
1. There is bullish divergence which makes upside more likely.
2. Waiting for the price to break the 144 ema and 21 ema with a strong blue bullish candle will be our entry.
3. Our target will wizz level 4 and 5.
4. I advise traders always to protect their profit or use trailing stops.
So in my view, traders should wait for the confirmation before trading this pair and look for buy opportunity only as it matches the expected wave.
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