Last week the EUR/CAD (FOREX:EURCAD) presented some interesting trading opportunities after very strong EUR/USD (FOREX:EURUSD) moves and weak CAD/USD (FOREX:CADUSD) moves. In fact, EUR/CAD has much better and cleaner structure than the EUR/USD, so keeping an eye on that pair may not be a bad idea. However, we need some deeper retracement before we can look for any long entry. I will keep an eye for a three-wave retracement, which is normally a, b, c, back to base channel line. If we get it, then we will look for an opportunity to take long positions on the EUR/CAD.
Elliott Wave Education: Flat Pattern:
A Flat is a three-wave pattern that is labeled A-B-C and generally moves sideways. And Flat Pattern is corrective in nature, which is counter-trend to the main trend. Flat Pattern is a very common Elliott Wave Pattern. Mainly there are three types of flat pattern: regular flat, expanded flat and running flat.
Expanded Flat Elliott Wave Pattern.
• Expanded Flat has 3-3-5 internal structure of sub-waves. • In Expanded Flat, wave B moves beyond the start of wave A. • Wave C ends more substantially beyond the ending level of wave A in Expanded Flat. • Expanded Flat appears in wave two or four in an impulse, wave B in an A-B-C, wave X in a double or triple zig-zag, or wave Y in triple threes.