CADUSD, Pullbacks In The Channel, Further Declines Likely!

Hello Traders Investors And Community,

Welcome to this analysis about CADUSD, we are looking at the 4-hour timeframe perspectives. CADUSD as in recent times showed up with heavy bearish declines to the downside has developed an important formational structure from where further determinations to the downside are likely given that should not be underestimated here, therefore I detected all the important levels and likely destinies that we should consider with CADUSD and its upcoming movements.

As when looking at my chart we can watch there how CADUSD now developed this massive descending-channel-formation with the coherent wave-count in the channel and the wave A almost already completed. Now CADUSD is about to form the wave B in the structure that is moving directly into the upper-boundary and the resistance-cluster lying there marked in red where several resistances coming together and therefore it is highly likely that when CADUSD moves into this cluster a pullback will follow. When the high possible pullback emerges from the upper resistance-cluster this will be the origin of the wave C to the downside which will complete the whole wave-count and test the main lower considerable back-up-zone marked in blue in my chart. When CADUSD approaches this zone it can be a potential solid stabilization from where CADUSD has the ability to back-up when the demand increases, this can also lead to a channel breakout however it needs to be shown firstly how CADUSD moves into these zones.

For now, wave C and further pullbacks should be expected as the resistance lying within the structure is just too strong to keep by side here. Bearing this in mind we need to be prepared for these upcoming volatilities to do not get overwhelmed when they exaggerate in the structure this is always necessary as the market can shift more quickly than previously expected.

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Information is only educational and should not be used to take action in the market.