Complex correction for the fourth wave green in an impulsive move of a bigger degree is pointing towards lower levels as this X wave is one of a large construction.
That being said, it is difficult to have a stop loss or invalidation area while it is mandatory to have a move below 1.28 before the fourth wave correction is over. What market formed so far is a double combination pattern for both wave a and b in purple and now we should see the next corrective wave to the downside of a possible double or even triple three.
Yesterday’s Fed interest rate decision didn’t really move the USDCAD pair in the sense that it ended up almost unchanged on the day as loonie traders are focusing on Canadian GDP this coming Friday to decide on what the next move should be.
Until then, from a technical perspective this market is bearish and 1.28 is a nice target with 1.3456 highs holding.
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