Transition to downward correction. USD/CAD wave analysis.
28.07.2014
Analysis for July 28th, 2014
In our previous review, “Ascending zigzag. USD/CAD wave analysis for 24.07.2014”, we discussed one of the alternative scenarios how the price may move inside possible ascending zigzag (b).
Possible ascending impulse a of (b) of zigzag(b) is about to be completed. After zigzag completion, local descending correction b of (b) is expected.
Wave structure at the middle levels implies that the pair is forming ascending zigzag(b) of [iv] and right now is finishing its right leg a of (b) of [iv] in the form of impulse. In this case, after completing this impulse, the price is expected to form local downward correction b of (b) of [iv], and only after it, price will start forming ascending zigzag(b) of [iv] with predicated target of ~1.10.
The critical level for this scenario is the value of 1.0619.
However, at the same time one should remember that any possible scenario is subjective and the market may move in a completely different direction.
RoboForex Analytical Department
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Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.