This setup is similar to the USDCAD but here we have more reasons to think that the big decline is starting.
Looking at weekly chart we have:
- 0.61 fib retracement from long term highs
- middle of channel acting as resistance
- divergence on AO shows that wave 5 is finishing
- wave relationship completed : wave 5=1.61 wave 1 (purple line)
- Strong level of S/R
On D1 chart we have a five impulse of lesser degree that appears to be complete with an ending diagonal for wave 5 blue (see below)
Bearish divergence on AO also suggest that wave 5 is finishing.
Regards.
*****************DISCLAMER********************************************************************
This is just and idea, not a recommendation to buy or sell.
Always do your own analysis before opening a trade.
Managing is 60% of a trade, anytime I may decide not to open, close or even stop and reverse a trade depending on price action.
Any respectful and constructive ideas are welcome (agree or disagree).
Looking at weekly chart we have:
- middle of channel acting as resistance
- divergence on AO shows that wave 5 is finishing
- wave relationship completed : wave 5=1.61 wave 1 (purple line)
- Strong level of S/R
On D1 chart we have a five impulse of lesser degree that appears to be complete with an ending diagonal for wave 5 blue (see below)
Bearish divergence on AO also suggest that wave 5 is finishing.
Regards.
*****************DISCLAMER********************************************************************
This is just and idea, not a recommendation to buy or sell.
Always do your own analysis before opening a trade.
Managing is 60% of a trade, anytime I may decide not to open, close or even stop and reverse a trade depending on price action.
Any respectful and constructive ideas are welcome (agree or disagree).