Tuesday, October 28, 2014

My Binoculars on CadChf over the long and short term

Since last month, I have been having a bearish short term view on the Cadchf and I was not surprised when a major dip ( on short term basis) started on 10th of October . This dip corrected and it seems the correction is over for the bearish short term dip to continue.

In order to know what to expect from this currency pair for a long term, I had to dig deeper and see farther. .....And yes, I've found something. Let me share with you.

Looking at the weekly chart, the last motive wave move probably ended on November 2007 and a bearish correction had surfaced since then. With a zigzag corrective pattern which probably could have ended on August 2011 and will be more probable if price breaks the upper boundary of the corrective channel in an Impulsive move to resume the bullish move for many years, perhaps a decade.

The long term bias will be bullish if these conditions are satisfied.

Price also could opt for a further dip, probably forming a complex correction or a new motive move ( I will come up with the analysis of this possibility later). These are long term views which will guide us as we follow price movement to the future having the information right at hand.

On the 4 H chart, there was a 5-wave impulsive move which ended successfully with an ending diagonal formation, little wonder price crashed in a characteristic ending diagonal resultant move. 
The present bullish move is a correction which looked completed and I expect price to trade in the zone of (0.8200 and 0.8000) which are 100% and 161.8% extension of wave a from b respectively ; these target zones are also good support levels.

I'm presently in a short position as I watch how price play out and trust me to always update you.

You can forward your E-mail address to forexmaster05@yahoo.com or contact me for any question or partnership deal

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