Elliott Wave Daily

Trade Idea: USD/CAD - Stand aside

Typography

USD/CAD - 1.3301

 
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       :

Bought at 1.3350, stopped at 1.3290

Position: - Long at 1.3350

Target:  -

Stop: - 1.3290

 
New strategy             :

Stand aside

Position: -

Target:  -

Stop:-


Yesterday’s selloff on broad-based weakness in the greenback dampened our bullishness and suggests top has been formed at 1.3535 earlier and near term downside risk remains for at least a retracement of recent rise, hence weakness to 1.3270-75 would be seen, however, downside should be limited to 1.3235-40 (61.8% Fibonacci retracement of 1.3056-1.3535) and reckon previous resistance at 1.3210 would hold due to near term oversold condition.

In view of this, would not chase this fall here and would be prudent to stand aside in the meantime. Above 1.3350 would bring recovery to 1.3390-00, however, price should falter below previous support at 1.3421 (now resistance), bring another decline later. Only above 1.3475-80 would abort and suggest low is formed instead, bring test of 1.3495 resistance first.

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.

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Author: Action Forex
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