Ending Diagonal On USD/CAD Indicates A Reversal
Gregor Horvat | Apr 22, 2016 06:52AM ET
USD/CAD hit new lows as expected after bounce to 1.2300 proved to be corrective rally about we warned you yesterday when rally was visible only with three waves. It was red wave 4) that belongs to an ending diagonal which is now in last leg of decline. However there is still room for 1.2660 area where we will pay attention for an impulsive turn. Five waves up back above 1.2900 would be strong evidence of a completed decline.
USD/CAD, 4H
The ending diagonal is a special type of motive wave that occurs primarily in the wave 5 position when price has moved too far and too fast. Some ending diagonal triangles appear in the C wave of an ABC correction. In all cases, the ending diagonal terminates the move of larger patterns.
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