Looking at how price has developed, I will remain on this pair for the remaining of 2017. However, I would prefer to be patient and wait for a decent correction towards 1.3122 before looking for a short opportunity again. Next week BOC Rate Statement might come in as anticipated and might give us the necessary correction.
Here are 3 reasons for me to avoid shorting this pair immediately -
1) Price has met the minimum criteria fibonacci ratio for a 3rd wave down. This give us the expectation of seeing a wave 4 correction before another move lower.
2) We are seeing a divergence forming. This show us that the strength might have subsided and a correction is near.
3) On the hourly timeframe, we are seeing a potential expanding diagonal structure forming. This technical pattern is a reversal pattern and thus we believe the higher probability direction is to the upside - a very short term one though.
So my trade plan next week?
BE PATIENT WITH THE BOC RATE STATEMENT.
**Definitely keeping a close watch on how price develop next week.