CadYen: A new opportunity?

There is an opportunity surfacing here to trade the fifth wave in the opposite direction after a confirmed long term zigzag correction.

From the weekly chart, a successful zigzag correction was formed at 106.5 which is a resistive zone. 

 

Without surprise, price reacted immediately downward from this level. 

By projection, if price breaks the supportive trendline, we could see price at 49 ,which is the 61.8% projection of wave A from B to ride to C, in the very long run.

Zooming down to the 4hr chart, the movement from 106.5 looks impulsive after completing 3 waves with the fourth wave, a diagonal triangle, expected to complete if price does not go back to the diagonal region.

 

 In as much price is held below 96.8, there is a high probability that price will fall especially if it turns back from to break 94.4 downward. the region 94.4 - 96.8 are very important and a sell could be taken from these areas if price shows a sign of reversal. 

 

If these level are held and price dips further, we could see price at 88 (61.8% extension of wave1-3 from wave 4) and its neighborhood.

If price breaks above 96.8, an alternate wave count will be required to ascertain the next destination of this market