The equity markets didn’t like tone of the FOMC minutes which led to selling. Think it best to maintain a bearish bias with the goal of pushing under May 6th low. The problem is that the market will be choppy every time it approaches these lows until it breaks under.
In our latest post at Trader Planet, we showed a near-term bearish but long-term bullish path for the Canadian Dollar as it emerges from a corrective pattern that has spanned eight years. Basically, we expect it to decline into a higher low, and then bounce. However, as is often the case with corrective patterns, it is difficult to be certain that the correction is truly finished. It could reach for a lower low instead.