Elliott Wave Daily

Trade Idea: USD/CAD - Buy at 1.3400

Typography

USD/CAD - 1.3480

 
Recent wave: Only wave v of c has ended at 0.9407 and wave C of major A-B-C correction is underway for headway to 1.4700

Trend:  Near term up

 
Original strategy       :

Buy at 1.3380, Target: 1.3530, Stop: 1.3320

Position: -

Target:  -

Stop: -

 
New strategy             :

Buy at 1.3400, Target: 1.3580, Stop: 1.3340

Position: -

Target:  -

Stop:-

The greenback finally penetrated indicated previous resistance at 1.3455, adding credence to our view that the correction from 1.3535 has ended and upside bias remains for the rise from 1.3223 to extend gain to previous resistance at 1.3535, once this level is penetrated, this would confirm early upmove has resumed and extend headway towards previous chart resistance at 1.3599 later which is likely to hold from here.

In view of this, would not chase this rise here and would be prudent to buy on subsequent pullback as 1.3400 should limit downside. Only below previous resistance at 1.3337 would abort and suggest top is possibly formed, risk weakness to 1.3300-10 but indicated support at 1.3262 should remain intact.

To recap, wave B from 1.3066 is unfolding as an a-b-c and is sub-divided as a: 1.2192, b: 1.2716 and wave c is a 5-waver with i: 1.1983, ii: 1.2506, extended wave iii with minor iii at 1.0206, wave iv ended at 1.0781 and wave v as well as wave iii has ended at 0.9931, hence the subsequent choppy trading is the wave iv which is unfolding as (a)-(b)-(c) with (a) leg of iv ended at 1.0854, followed by (b) leg at 1.0108 and (c) leg as well as the wave iv ended at 1.0674. The wave v is sub-divided by minor wave (i): 0.9980, (ii): 1.0374, (iii): 0.9446, (iv): 0.9913 and (v) as well as v has possibly ended at 0.9407, therefore, consolidation with upside bias is seen for major correction, indicated target at 1.3700 and 1.4000 had been met and further gain to 1.4700 would be seen later.

About the Contributor
Author: Action Forex
More from the contributor