Tim asked for my view on USD/CAD, so here we go.
The rally of the 0.9404 has developed into a double zig-zag correction. The first zig-zag (wave w) went from 0.9404 to 1.0657 followed by an x-wave down to 0.9632 and we are currently in the later part of the second zig-zag (wave y). wave a of this zig-zag turned into an expanded leading diagonal and we are in the wave iv of c, which ideally will terminate near 1.0890, but could move a Little lower towards 1.0811 before wave v higher towards 1.1665 where I expect wave y to terminate. The question then will be if we shall see a third zig-zag (wave z) or we will see a a new decline towards 1.0260. Longer term we could be building a B-wave triangle (see the figure below), but it's still to early to tell.
is it common to have a 3rd zigzag? if yes, what will the target be? Thank you.
ReplyDelete