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USD/CAD Elliott Wave Analysis Trading Lounge 4 Hour Chart, 9 February 24

U.S.Dollar /Canadian Dollar(USD/CAD) 4 Hour Chart

USD/CAD Elliott Wave Technical Analysis

FUNCTION: Counter Trend

MODE: impulsive  

STRUCTURE: blue wave 5  

POSITION: black wave C

DIRECTION NEXT LOWER DEGREES: blue wave 5 (started)

DETAILS: red wave Y of blue wave 4 looking completed at 1.35485. Now blue wave 5 of C is in play. Wave Cancel invalid level:1.35485

The "USD/CAD Elliott Wave Analysis Trading Lounge 4 Hour Chart" dated 9 February 24, delves into the intricacies of the U.S. Dollar/Canadian Dollar (USD/CAD) currency pair using Elliott Wave analysis, a method that seeks to understand market movements in terms of recurring wave patterns.

The identified "FUNCTION" is "Counter Trend," indicating that the analysis is focused on a potential reversal or corrective move against the prevailing trend. This suggests that traders may be exploring opportunities in the context of a counter-trend move.

The specified "MODE" is "Impulsive," revealing that the current market structure displays characteristics of an impulsive wave. Impulsive waves are typically associated with strong and directional price movements that align with the dominant trend.

The "STRUCTURE" is defined as "Blue Wave 5," providing insight into the current position within the Elliott Wave sequence. This indicates that the analysis is honing in on the fifth wave within the larger structure.

The "POSITION" is labeled as "Black wave C," giving traders information about the subwave count within the broader structure. Understanding these nested waves is crucial for Elliott Wave analysts seeking to identify potential turning points.

In terms of "DIRECTION NEXT LOWER DEGREES," the analysis points to "Blue wave 5 (started)," indicating the anticipated direction of the next lower-degree wave. This nested wave structure is key for traders employing Elliott Wave principles.

The "DETAILS" section notes that "red wave Y of blue wave 4" is considered completed at 1.35485. This suggests that a potential reversal or continuation of the larger structure may be in progress, with "blue wave 5 of C" now in play.

The "Wave Cancel invalid level" is specified as "1.35485." This level serves as a critical reference point, and a breach of this level may prompt a reassessment of the current wave count and market trajectory.

In summary, the USD/CAD Elliott Wave Analysis for the 4 Hour Chart on 9 February 24, suggests a potential counter-trend move with the initiation of "blue wave 5 of C." Traders are advised to monitor the market closely, particularly the specified invalidation level at 1.35485, for potential shifts in the market sentiment.

Technical Analyst: Malik Awais

Source: Tradinglounge.com

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