HomeTrade IdeasElliott Wave DailyTrade Idea: USD/CAD - Buy at 1.3540

Trade Idea: USD/CAD – Buy at 1.3540

USD/CAD – 1.3691

 
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 1.3540, Target: 1.3750, Stop: 1.3480

Position: –

Target:  –

Stop: –

 
New strategy             :

Buy at 1.3540, Target: 1.3750, Stop: 1.3480

Position: –

Target:  –

Stop:-

As the greenback retreated after rising to 1.3794, retaining our view that further consolidation below this level would be seen and correction to 1.3635-40 is likely, however, reckon downside would be limited to 1.3600 and support at 1.3530 should hold, bring another rise later, above said resistance at 1.3794 would extend gain to 1.3840-50 but near term overbought condition should prevent sharp move beyond there and price should falter below 1.3890-00, risk from there is seen for a retreat to take place later. 

In view of this, would not chase this rise here and would be prudent to buy again on further subsequent pullback as 1.3530 support should limit downside. A firm break below this level would abort and signal a temporary top is formed instead, risk correction to 1.3500 and later towards 1.3450-60 but support at 1.3411 should remain intact, bring another upmove 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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