Wave Analysis:
Despite our expectations to continue short, the price barely hit the lows of 110.077 and is currently pulling back to the upper side. We expect this upward rally to be the continuation of the corrective wave (ii) and should not go beyond 111.78 from where we’ll be looking to go short at low risk. The anticipated sell position should be the continuation of the impulsive wave (iii) and may be extensive in nature.
This downward rally is highly anticipated since the other positively correlated pairs shown below are pretty much bearish and will head further to the lower side.
CADJPY Daily Chart
US Dollar in a corrective mode
When you’ll be looking to sell USDJPY around 110.077, also sell CADJPY around 83.48
NZDJPY Daily Chart
US Dollar in a corrective mode.
As long as USDJPY, CADJPY remains below 110.077 and 83.49 respectively, remain short in NZDJPY.
CADCHF Daily Chart
US Dollar in a corrective mode
While you’ll be looking to go short in CADJPY, USDJPY around 83.48 and 110.077, also look for potential sell position in CADCHF.
Trade Recommendations:
If you’re not short already, wait for minor bullish pullbacks towards 110.07 to go short with an ideal target at 108.94.
Origin: FreshForex
