This pair has move on ABC zigzag from 2009 low to 2013 high in clearly defined channel. The zigzag appear to be completed and have now started the retracement of the entire move (see weekly chart)
In doing so first and second part of the zigzag to the down side are also complete and could be in very early stage of wave C to the downside that should develop in 5 wave impulsive move and if correct would be very profitable to trade.
If entry is formed on retracement then the stop an be relatively close ie just above the 0.9350 or lower if price action permits it.
All Other details are on the chart
As always, do your own analysis for your trade requirement.
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Not a fan of a short on this currency pair, feel the fundamentals and technicals point to continued strength tradingview.com/v/jeoRwtUM/
DanV
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You could well be right. But if the oil even begins to retrace the dramatic fall that could allow CAD to regain some of the ground lost. Having said that the overall risk involved (assuming entry is not far of the recent top then) is acceptable and worth keeping an eye out. Thanks for sharing your analysis and comments. Appreciate it.
AgentSmith
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No problem. Yes agreed. My own analysis of oil also suggests that we are at good levels to buy, however I'm not convinced that such a rapid return to higher levels will result soon, but this is not really based on anything substantial so we'll have to see how it plays out.
DanV
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Agreed. As far Oil is concerned my attempts to counts waves on such dynamic drop suggest we are in a retrace before final leg to may be 38-40 for a significant low. Might take few more weeks yet. Monitoring for now.
IvanLabrie
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I'm considering a second entry short here as well.
Had a chart depicting the possibility of a sharp decline, so I agree, it's fairly likely this is accurate.
DanV
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Thanks for that.
Neel_K
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hey DanV,
Hope you are doing well.
I was just reviewing my previous posts, and i found this chart of urs linked to one of mine.
This trade is nearly there. !!! Way to go !!!
Neel
DanV
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Hi, I am doing fine thank.
Yes indeed this one worked out well. % wave decline means that for this leg it appear to have completed.
We could not expect some sort of zigzag retracement to 38.2% - 50% retracement before possible second leg down.