Sun, Feb 05, 2023 @ 17:00 GMT
HomeTrade IdeasElliott Wave DailyTrade Idea: USD/CAD - Stand aside

Trade Idea: USD/CAD – Stand aside

USD/CAD – 1.2727

Trend:  Near term up

 
New strategy             :

Stand aside

Position: –

Target:  –

Stop:-

Although the greenback slipped again to as low as 1.2687, lack of follow through selling and current rebound suggest consolidation would be seen and recovery to 1.2770-75 cannot be ruled out, however, break of resistance at 1.2820 is needed to signal the fall from 1.2917 top has ended, bring further gain to 1.2836, then towards 1.2880 but said resistance at 1.2917 should hold. Looking ahead, as we are still treating this rebound from 1.2061 as wave iv, reckon 1.2975-80 (61.8% Fibonacci retracement of wave iii) would limit upside and 1.3000 should hold, bring selloff later in wave v. We are keeping our count that wave v as well as wave (C) ended at 1.3794 and impulsive wave (i ii, i ii) is now unfolding with minor wave iii ended at 1.2414, followed by wave iv correction ended at 1.2778, wave v has reached our indicated downside target at 1.2100 and may extend to 1.2000.

On the downside, below said support at 1.2687 would signal the fall from 1.2917 top is still in progress for a least a retracement of recent rise to 1.2670, then test of support at 1.2636 but a drop below this level is needed to signal recent rise has ended at 1.2917, bring further fall to 1.2600 and later towards 1.2550-60.

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.

Featured Analysis

Learn Forex Trading