USDCAD: Bracing For Another Drop. But When? And How Far?
After several years long strong uptrend, the past month's have been retracing that uptrend. From what I surmise, this retracement is far from over. Will we eventually see higher prices ahead for CAD? I believe yes. But that won't happen for awhile yet.
In this Monthly chart, you can see that the way I see it, that strong uptrend that ended was only the wave (3). Therefore, this current correction that is correcting that wave (3) is the wave (4). After which, of course there should be the wave (5) that will take prices to new highs eventually. That is if my count is correct.
There was also that completed C&H pattern that I had been talking about for months on end last year. The profit targets for that C&H pattern are still much higher up. Near where the completion of the POTENTIAL Bat would also be.
From this view of USDCAD , you can see from the wave (3) high prices had been declining in what I see as the wave (A) of (4). That wave (A) decline most likely ended 2 weeks ago and now the wave (B) is in progress. How far that wave (B) will go is anyone's guess though. But after that wave (B) is done, we will see prices head even lower in the wave (C).
I've marked a POSSIBLE on the chart but until we see the end of the wave (B), that will remain only a possibility.
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