EURCAD – Bearish Storm After Wave B Calm

Wave (A) starts the decline from 1.59614 to 1.56686, followed by wave (B) as a contracting triangle (ABCDE) with key points at 1.58197 (A), 1.54834 (B), 1.57239 (C), 1.55380 (D), and a lower high at E. This triangle signals consolidation, typically seen in wave B, and often precedes a continuation in the direction of the previous trend, bearish in this case. The contracting triangle reflects market indecision and decreasing volatility before a decisive move. Such patterns usually indicate a pause within a larger corrective phase, setting the stage for the next strong wave.

Wave (C) is expected to follow, supported by Fibonacci levels at 1.55002 (retracement) and 1.54315 (extension). A break below 1.55380 confirms the bearish move, with short targets at 1.55300 – 1.54700 – 1.54120+. Invalidation occurs above 1.57239. Key Elliott Wave principles support this setup, highlighting the triangle as a continuation pattern.

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