On the chart of the Canadian dollar major pair, the price forms a descending zigzag wave. In the framework of the last part (C), a counter section has been formed. However, the potential of which is close to exhaustion.
After the decline of the graph since March 19, you can see a price decrease. Its wave level indicates a high probability of formation of a larger downward wave.
In the coming days, you can count on the end of the current decline. A potential reversal zone is the probable reversal site. Then, the beginning of price growth is expected. The upper limit of the weekly range is the calculated resistance.
Boundaries of resistance zones:
- 1.2880 / 1.2930
Boundaries of support zones:
- 1.2530 / 1.2480
Explanations of the figures:
For simplified wave analysis, a simple waveform is used that combines 3 parts namely A, B, and C. All types of correction are created and most of the impulses can be found in these waves. Every time frame is considered and the last incomplete wave is analyzed.
The areas marked on the graphs indicate the probability of a change in the direction of motion has significantly increased as calculated in the areas. Arrows indicate the wave counting following the technique used by the author. A solid background of the arrows signifying the structure has been formed while the dotted one means the expected wave motion.
Attention: The wave algorithm does not take into account the duration of the movement of tools in time. The forecast is not a trading signal! To conduct a bargain, you need to confirm the signals used by your trading systems.
