Please see linked ideas below; we gained off the 250 pip bull move smashing our 0.7000 target. We now can expect a correction. This is purely a forecast and further PA confirmation will be seemed before entering.
See annotations, and linked idea below.
The QE announcement will have an effect on the longer term value of the pair; we will outline the possible effect on both scenarios.
We believe QE will not go ahead any time soon, if it does it will be announced mid next year (June) – even though very unlikely. However, we can expect a gradual decline in interest rates...
Strong earnings, PPA's signed with a further commitment of 1.5/GW. 2019 net profit was over USD 2 Billion with net earnings attritbutable to equity share holders was over USD 1.1 billion. A combined portfolio of over 3.5 GW; therefore earnings will be accelerated.
We have various indicators of a reversal:
• Divergence in play
• Potential reversal channel in line with the divergence
• 200 EMA acting as our resistance in target area
• Price level 1.30750-1.3000 has been a key Support/Resistance level since 2016
• Oil prices looking bearish which influences the value of CAD
• NFP positive speculation for the USD...
Something like this, can you see I have a stop below the antipcated potential RT of the Lows (the "Potential" harmonic pattern outlined in previous post). If price breaches below that level with a close and bearish strcuturee then the long setup will have to be re-evaluated if the bias is still there. (See related Posts below)