Prices almost hit the previous high today (see 3rd wave on chart), but failed short. There are these 3 possibilities
1- The Head and Shoulders is still in tact but not validated. If this formation occurs, prices may go even below 1.28 levels as it is a very potent formation.
2-There could be an ABC formation in the making (see chart). This would be in line with major 4th wave correction, i.e. the erratic nature of price movements recently justifies it (i.e. the movement between A-B is not a 1-5 wave count), high volatility etc. This formation (ABC) if completes would satisfy completion of 4th major wave at 1.28 and one shall wait for a bounce back at this level.
3- Prices continue to go up surpassing 1.32 and previous high (end of 3rd wave on chart). My opinion is that this case is the least likely at this point in time, as I can't see any formation validating this. Only a strong oil drop or a very negative BoC announcement may cause such a scenario.
Keep your eyes open.
1- The Head and Shoulders is still in tact but not validated. If this formation occurs, prices may go even below 1.28 levels as it is a very potent formation.
2-There could be an ABC formation in the making (see chart). This would be in line with major 4th wave correction, i.e. the erratic nature of price movements recently justifies it (i.e. the movement between A-B is not a 1-5 wave count), high volatility etc. This formation (ABC) if completes would satisfy completion of 4th major wave at 1.28 and one shall wait for a bounce back at this level.
3- Prices continue to go up surpassing 1.32 and previous high (end of 3rd wave on chart). My opinion is that this case is the least likely at this point in time, as I can't see any formation validating this. Only a strong oil drop or a very negative BoC announcement may cause such a scenario.
Keep your eyes open.
