6j1! having a nice little bounce here at support to pop back above the 20 year low also a 1:0.618 long term fib extension just below.
This has already had the fear test plunge followed by rocketing automatic rally and now has pulled back to the 20 year low again.
May meander, may pump - who knows really but this is the big one mark my non financial advice words.
My pick for a FX pair is USDJPY because I think DXY has also hit a major top. Idea linked below.
Not advice.
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Also its had 3 waves now - could be a flat correction. It sits right between the 0.5 and 0.618. It looks good to go.
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USD is just too risky to short against and also considering my stock market bias is to the downside then I think that DXY may have another leg up. And so I am short CADJPY that seems quite a bit safer to hold long term.
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More fear testing probing lower I think. Its now in the common reversal area of 0.618 - 0.786 and 4H RSI soon to go oversold.
This decline looks more corrective than previous.
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Look like i was wrong as its moved passed retracement fibs in a hurry and was a running flat ABC dominant trend appears to be returning.
Next fib is 0.006.
Bail !
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Very bearish upper wicked engulfing momentum candle on the monthly. It was good to exit. Next stop $0.006 for the 1:1 extension where i will be interested again if it gets there.