HomeTrade IdeasElliott Wave DailyTrade Idea: USD/CAD - Buy at 1.3655

Trade Idea: USD/CAD – Buy at 1.3655

USD/CAD – 1.3740

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 1.3655, Target: 1.3850, Stop: 1.3595

Position: –

Target:  –


As the greenback has rebounded again after finding support at 1.3642, suggesting bullishness remains for recent upmove to resume after consolidation, above resistance at 1.3794 would extend recent upmove to 1.3840-50 but near term overbought condition should prevent sharp move beyond 1.3890-00 and price should falter below 1.3950, 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 pullback as said support at 1.3642 should limit downside and bring another rise later. Below 1.3600-10 would defer and risk correction to 1.3570 but reckon 1.3530 support would hold from here. 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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