Here is a daily chart of the USD/CAD pair. As you can see the pair has fallen from its high in a complex corrective manner. As 5 waves down from the second X are clearly visible, I am expecting a small bounce back up in a B wave before another impulse down completes the zig-zag Z. Wave 1 started off the screen at 0.9058 so as long at price does not breach that level, this count remains valid.
Here is a closer view of the 5 waves down that I spoke of earlier. As you can see the move looks complete or at least nearly complete. I have taken a small long position in the hope that the bottom is in at 0.997 with minimal risk as my stop is only 20 pips away at 0.995 (beneath the recent low) If this level is breached I will wait for another 5 waves up and 3 waves down on a smaller time frame to try and get long again. My target is between the first and fourth wave extremes at 1.03 and 1.037.
curious if the bounce just now (4am cst) up to to low .9990's is the start of the B of Z to 1.03? though the pop up is stalling now
ReplyDeleteeither way, nice heads up, thanks!
I am hoping it is, however we can't be sure. This move could extend further down so move your stop to break even when price is sufficiently far enough away just in case the bottom is not in just yet.
ReplyDelete