Can $$$

Can $$$ mar 2011

Currencies are always a little trickier than stocks. First of all they are not expected to climb forever (as stocks essentially are), and secondly the 5 up 3 down sequence in EW cannot possible apply as one currency up is another currency down, exactly the inverse so one cannot be 5 and the other 3! Nevertheless often, patterns reveal themselves that can have a great deal of predictive value. We recently saw the Yen and now the Can $ has a very clear wedge.

This pattern has a 3-3-3-3-3 pattern (for this purpose a triangle is viewed as an elongated flat and also counted as a 3), making higher highs and higher lows with , perhaps, a throw-over at the end. They only occur in 5th (that is just before the end), and C positions. Typically the individual legs look like they are falling like dominos in reverse. Wave 3 may not be the shortest.     This one is a gem. They invariable retrace right down to the base or lower, in this case about 92. Perhaps time to buy a few US dollars!