USDCAD is finally turning up as expected from an Elliott wave ending diagonal, and ideally is now making a five wave advance in wave A or 1, which means more upside can be expected next week especially if the price will close bullish today on Friday, the most important day of the week! On the other hand, we would be forced to look back to the downside if from any reason current recovery would stay in three rather than five swings.
An ending diagonal is a special type of pattern that occurs at times when the preceding move has gone too far too fast, as Elliott put it. A very small percentage of ending diagonals appear in the C wave position of A-B- C formations. In double or triple threes, they appear only as the final “C” wave. In all cases, they are found at the termination points of larger patterns, indicating exhaustion of the larger movement.
- structure is 3-3-3-3-3
- a wedge shape within two converging lines
- wave 4 must trade into a territory of a wave 1
- appears primarily in the fifth wave position, in the C wave position of A-B- C and in double or triple threes as the final “C” wave