EURUSD Analysis
The euro has been weakening for a while trading to an old time low in years. From a Technical view we are most likely to see pullbacks in the upside direction how long they will take it hard to tell now but considering that we can have short term opportunities.
Looking at previous pullbacks we can see it doesn't last forever in Elliott Wave Theory terms we can consider it to be correction( 2nd wave or 4th wave). It would be wise to be optimistic about the downside as its still in tact. EURUSD and XAUUSD situation aren't any different as the pullbacks are have great correlation, the time it took may be different but we have a clue. Waiting for a bit of pullback in the downside direction to form the 2nd or B wave before the next rally.
The retracement level that price will reach can be quite tricky but keeping in mind of the 4 golden zones( 38.2, 50, 61.8 and 78.6/76.8) but its always better to look at the fractals or sub-waves as it can give us a clear idea of where price will call it a bottom.
CADJPY Analysis
Price has been moving bullish for while now I would consider this to be an impulse(1-2-3-4-5 sequence) formation waves 1 and 4 are still in gaming. "Waves 1 and 4 never overlaps" we can use that idea to be able to trade wave 5 comfortably knowing where our stops are at. The deeper the pullback the more increase in R/R.
The euro has been weakening for a while trading to an old time low in years. From a Technical view we are most likely to see pullbacks in the upside direction how long they will take it hard to tell now but considering that we can have short term opportunities.
Looking at previous pullbacks we can see it doesn't last forever in Elliott Wave Theory terms we can consider it to be correction( 2nd wave or 4th wave). It would be wise to be optimistic about the downside as its still in tact. EURUSD and XAUUSD situation aren't any different as the pullbacks are have great correlation, the time it took may be different but we have a clue. Waiting for a bit of pullback in the downside direction to form the 2nd or B wave before the next rally.
The retracement level that price will reach can be quite tricky but keeping in mind of the 4 golden zones( 38.2, 50, 61.8 and 78.6/76.8) but its always better to look at the fractals or sub-waves as it can give us a clear idea of where price will call it a bottom.
CADJPY Analysis
Price has been moving bullish for while now I would consider this to be an impulse(1-2-3-4-5 sequence) formation waves 1 and 4 are still in gaming. "Waves 1 and 4 never overlaps" we can use that idea to be able to trade wave 5 comfortably knowing where our stops are at. The deeper the pullback the more increase in R/R.
