Guest Commentary: MarketVisionTV - Selling When it Looks Wildy Bullish
* $ Canada continues to produce strong erratic moves.
* But remains within a range. This is typical of a triangle.
* A triangle at this point is bearish
* We will continue to trade the range being better sellers than buyer.
$Canada remains trapped within a bearish triangle and therefore should contain five three wave moves. Price action in every direction since the initial third wave low of 98.40 has developed in a three wave format. First with the 38.2 percent pullback to 1.0025 and then with the deep test of the low that held 98.60 consistent with a B wave. Much like the relatively aggressive but three wave rally in the C wave to 1.0035, the current D wave decline has taken a mirror image. Thus while it would be tempting to believe the the 99.65 pivot point will contain for an initial decline to 98.60 to complete wave 1 of a new downtrend, the odds slightly favor a final swing higher in the contracting triangle pattern to about parity. Continue to sell upside reactions expecting a range of consolidation resistance from 1.0055 to 1.0075 to contain for at least the 97.60 downside target. In fact an exact triangle objective projects 97.50.
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