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

U.S.Dollar /Canadian Dollar(USD/CAD) Day Chart

USD/CAD Elliott Wave Technical Analysis

Function: Counter Trend

Mode: Corrective  

Structure: likely zigzag in wave 4

Position: C of X

Direction Next Lower Degrees: blue wave 5 of C

Details: Blue wave 4 is in play, after that 5 of C expected. Wave Cancel invalid level:1.36274

The "USD/CAD Elliott Wave Analysis Trading Lounge Day Chart" dated 15 January 24, provides a comprehensive examination of the U.S. Dollar/Canadian Dollar (USD/CAD) currency pair using Elliott Wave analysis on a daily timeframe. The analysis focuses on understanding potential market movements, emphasizing corrective structures within the broader trend.

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

The specified "Mode" is characterized as "Corrective," indicating that the current market phase is corrective in nature. Corrective waves involve price movements against the primary trend and are crucial for understanding potential reversals or retracements.

The primary "Structure" is described as a "likely zigzag in wave 4," indicating that the current corrective pattern is possibly forming a zigzag structure within the broader Elliott Wave count. Recognizing specific wave patterns is essential for traders to anticipate potential price movements accurately.

The identified "Position" is labeled as "C of X," signaling that the market is currently within a complex corrective structure labeled as C of X. Complex corrections often involve multiple sub-waves and can provide challenging but rewarding trading opportunities.

In terms of "Direction Next Lower Degrees," the analysis points to the anticipated "blue wave 5 of C." This signifies that, following the completion of the current corrective structure (C of X), the subsequent move is expected to be an impulsive wave labeled blue wave 5 of C.

The "Details" section notes that "Blue wave 4 is in play," indicating that the market is currently within the corrective phase of the broader Elliott Wave count. After the completion of blue wave 4, the expectation is for blue wave 5 of C.

The "Wave Cancel invalid level" is identified as "1.36274." This level serves as a crucial 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 daily chart on 15 January 24, suggests that the market is currently undergoing a corrective phase (C of X), with a likely zigzag structure in wave 4. The anticipated direction for the next lower degree is blue wave 5 of C. 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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