SMART MONEY setting up for historical FOMC report next week.....USA CAD grinds higher in classic 5 wave impulse move....
As you watch USD CAD grinding up into a 12 year high you know one thing for sure-the pair is setting up for a fall. As the pair grinds higher on low volume and the Retail herd piles on SMART MONEY is getting ready for a big downward move.
We don't typically use Elliot wave theory in our trading but we happened to see a classic 5 wave "Elliot Wave" impulse move....the only question is how far if any the 5th wave extends. Sometimes wave 1,3, or 5 (impulse waves) extend into a much longer than normal wave.
Scenario #1) Price action could be at the end of wave 3 of the 5th wave in which case there is a 4th wave correction and a 5th wave move up (of the extended 5th wave) yet to go.
Scenario #2) If wave 5 is at or near completion we will see a correction starting.
Let's see where this goes....Trade with aggression