EURCAD Reacts Lower After Findings Bears In The Blue Box

EURCAD Found sellers in the blue box, and reacts lower.

The 1 hour EURCAD chart below is from 3/23/2021 Asia update. In it, we see continuation of  clear impulse wave in black wave ((iii)) down from the blue wave (ii) peak at 1.528360. Blue wave (ii) itself corrected blue wave (i) which preceeded it.  As per Elliott wave theory, we natually expected a correction to follow after wave ((iii)). Black wave ((iv)) was indeed in progress, and its end was nigh as we see on the chart below. In black wave ((iv)), the instrument made six swings, pending the seventh swing to complete the pullback. The pullback was expected to terminate at or within the 1.495856 and 1.503567  blue box area. We also see in the chart that the right side is downside, we therefore favor short positions in 3, 7 or 11 swings.

Elliot Wave 1 Hour chart  from 3/23/2021 Asia update

The 1 hour chart below is from 3/24/2021 Asia update. As was expected, the instrument traded into the blue box area. We then saw a reaction lower from the blue box in blue wave (i). The instrument is expected to pullback in blue wave (ii) before continuing lower in blue wave (iii). As usual,we expect (iv) and to (v) of ((v)) to finally follow. We need to see a break below black wave ((iii)) lows to confirm the next leg lower in black wave ((v)). This is because a double correction higher in black wave ((iv)) cannot be ruled out as long as black wave ((iii)) lows hold.

Elliot Wave 1 Hour chart  from 3/24/2021 Asia update