Idea is based on a combination of Elliot Wave theory and median line analysis. The rationale behind this technical analysis is shown on the chart along with specific targets. Good luck guys
I am little bit cautious here because...as we can see there is perfect working slope. Somewhere around 1.0600 will be interesting point, there is bullish trendline, horizontal support(red) and green line in andrews shows potencial support as well...aand there is pretty good loking divergence in 240
NQunlocked
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HelloItaskar, my scenario is indeed until now only hypothetical, that median line has to be broken (the bottom of your channel as well I think) to get extra confirmation
ForceFollower
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This down trend is hot indeed and it's approaching both sloped and horizontal support, so currently there's little trading opportunity - poor short entry, wide stop and a very close target. I'll be looking to go short but not now, only at the top of some correction, like at 1.075. As for long entries - you may be lucky to catch a key reversal bar, but I think more probably all we're going to see first will be only small corrections.
Also notice that price blew through the (blue) 50% retracement like Sneijder's shot on Mexico's goal, which is a sign that the up trend is very likely over and done. Price may keep falling until it reaches 1.05 or even lower than that (100% of the prior major swing down - red line). The black bull trend line may not hold - no signs of buyers yet.
NQunlocked
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Very nice chart ForceFollower! thank you. Sneijder has done a fantastic job :) !
itaskar
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honestly, what I think is that we will move sideaway here in upcoming weeks, between this two green lines. As we can see the quartile was tested in the past few times, now it is broken and can provide some support. In my eyes is this weekly trend bullish and there are few support areas ahead, so I think bullish here until the quartile will hold.
itaskar
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heh, this is interesting, 0,618 fibo is exactly 1.06000 :)
ForceFollower
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Yeah. :) We'll see, if this coincidence is relevant.
ForceFollower
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OK., I see your point. You may be right, esp. if the low at 1.056 holds. But first let's see if it does - I wouldn't try to buy it just because price is at the bargain levels. Why?
1. USDCAD is currently the strongest trending market; and it's a bear market. The CAD is strongest and the USD the weakest currency (by my method).
2. There's no support level just below us that I'd consider significant. Actually nothing until 1.056, then only 1.046. And you know, buyers need at least a minor swing low to hide their stops. :)
So, as I said, let's see, if the low at 1.056 holds.
ForceFollower
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Yeah, stay short. :)
NQunlocked
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I will :). Something weird is going on...before I open the idea the pink pitchfork is an Andrew's one. Once I open it, it becomes a schiff!!! Do you see an original of schiff pitchfork?