UC has been trending downwards quite firmly playing within the blue channel for the last few weeks.
Recent low of 1.3640 seemed to be a turning point, but did not feel confident on the reversal until upper blue channel line was successfully crossed. Wave count suggested that today we would punch through, and indeed we did, after hitting point C at 1.3818.
Currently flirting the blue channel again, I believe we will ride it down to around point (2), where the upward yellow (higher lows), and upper channel blue intersect. Hopefully a bounce off these two trend lines.
From here, E wave continues. I would like to see us continue back up to 1.47+ one more time before the big UC short, but will monitor as USD has had significant weakness lately, and comm dollars are not flying despite the recent drop off in USOIL.
Recent low of 1.3640 seemed to be a turning point, but did not feel confident on the reversal until upper blue channel line was successfully crossed. Wave count suggested that today we would punch through, and indeed we did, after hitting point C at 1.3818.
Currently flirting the blue channel again, I believe we will ride it down to around point (2), where the upward yellow (higher lows), and upper channel blue intersect. Hopefully a bounce off these two trend lines.
From here, E wave continues. I would like to see us continue back up to 1.47+ one more time before the big UC short, but will monitor as USD has had significant weakness lately, and comm dollars are not flying despite the recent drop off in USOIL.
Trade closed: stop reached:
Stops hit at BE :(