Usd/Cad Target at 1.0480, Oil Approaching $74.90
Usd/Cad Target at 1.0480
4 Hour chart trend: Mixed. Main price points: 1.0480, and 1.0630. Looking for: Wave IV)
The cad is currently in a pull-back mode after wave III) found the bottom, after the break through the support line and just above the 1.0630, wave III lows. If the wave count is correct, wave IV) is now in process, which means that another push down to previous lows is expected, once the wave IV) finishes somewhere below wave I) shown at 1.0966. Once wave V) gets underway, we believe that market will break through the 1.0630 support, where some huge short institutional orders may push the prices down to the first Fibonacci target at 1.0480 support area.
Oil Apraching $74.90
4 Hour chart trend: Long. Main price points: 67.00, and 74.90. Looking for: Wave C)
The 76.4% Fibonacci support, discussed on Thursday of last week, held very well in a corrective red wave B). Oil gained sharply (5% in o9ne session on Tuesday), from $67 support to the current price around $71 per barrel, which suggests that a new impulse leg is in progress. We are looking for a five wave move up in the red wave C) leg, approaching 74.90, and the wave A) top. If we are on the right track here, a whole blue wave B correction should be completed somewhere around the 76.00 area, just above the wave A) top of the second zig-zag.
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