Elliott Wave Daily |
Written by Action Forex |
Jan 11 17 15:25 GMT
USD/CAD - 1.3285
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 :
Sell at 1.3330, Target: 1.3160, Stop: 1.3390
New strategy :
Sell at 1.3350, Target: 1.3160, Stop: 1.3410
As the greenback has recovered after holding above support at 1.3177 (last week’s low), suggesting consolidation above this level would be seen and recovery to 1.3350 cannot be ruled out, however, reckon previous support at 1.3387 would cap upside and bring another decline later, below said support at 1.3177 would signal the fall from 1.3599 top is still in progress and extend further weakness to 1.3150, then towards 1.3100 level later this week but oversold condition should prevent sharp fall below previous support at 1.3081, risk from there has increased for a rebound to take place later.
In view of this, would not chase this fall here and we are still looking to sell on recovery as 1.3340-50 should limit upside. Above 1.3390-00 would defer and risk a stronger rebound to 1.3460-65 but upside should be limited and price should falter below resistance at 1.3558, bring another retreat later.
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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