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USD/CAD Elliott Wave Analysis Trading Lounge 4 Hour  Chart, 15 January 2024

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

USD/CAD Elliott Wave Technical Analysis

Function: Counter Trend

Mode: Corrective  

Structure: red wave B of 4

Position: black wave C

Direction Next Higher Degrees: red wave C of 4

Details: red wave A of 4 looking completed at 1.34021. Now red wave Bof 4 is in play. Wave Cancel invalid level:1.36274

The "USD/CAD Elliott Wave Analysis Trading Lounge 4 Hour Chart" for 15 January 24, provides a detailed examination of the U.S. Dollar/Canadian Dollar (USD/CAD) currency pair using Elliott Wave analysis. This analysis is conducted on a 4-hour timeframe, offering insights into potential market movements with a focus on corrective structures.

The identified "Function" is labeled as "Counter Trend," indicating that the analysis is primarily concerned with understanding and evaluating corrective movements within the broader trend. Counter-trend analysis is crucial for traders seeking opportunities in market retracements or reversals.

The specified "Mode" is characterized as "Corrective," highlighting that the current market phase is corrective in nature. Corrective waves involve price movements against the prevailing trend, providing opportunities for traders to navigate counter trend price actions.

The primary "Structure" is described as "red wave B of 4," signaling that the market is currently within a corrective phase labeled as red wave B within the broader Elliott Wave count. Understanding the structure of corrective waves is essential for anticipating potential price movements and formulating trading strategies.

The identified "Position" is labeled as "black wave C," indicating that the current corrective wave (red wave B of 4) is composed of sub-waves labeled black wave A, black wave B, and the ongoing black wave C.

In terms of "Direction Next Higher Degrees," the analysis points to the anticipated "red wave C of 4." This signifies that, following the completion of the current corrective structure (red wave B of 4), the subsequent move is expected to be another impulsive wave labeled red wave C of 4.

The "Details" section notes that "red wave A of 4" is considered completed at 1.34021. Now, the market is in the corrective phase of red wave B of 4. Understanding the completion of sub-waves within the broader Elliott Wave count is crucial for accurate wave analysis.

The "Wave Cancel invalid level" is identified as "1.36274." This level serves as a critical reference point, and if the market surpasses this level, it would invalidate the current wave count, prompting traders to reassess their analysis and potentially indicating a change in the anticipated market direction.

In summary, the USD/CAD Elliott Wave Analysis for the 4-hour chart on 15 January 24, suggests that the market is currently in a corrective phase (red wave B of 4) following the completion of red wave A of 4. The anticipated direction for the next higher degree is red wave C of 4. Traders are advised to monitor the progression of the corrective wave and consider the invalidation level at 1.36274

Technical Analyst: Malik Awais

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