Fri, Jun 02, 2023 @ 22:28 GMT
HomeTrade IdeasElliott Wave DailyTrade Idea: USD/CAD - Stand aside

Trade Idea: USD/CAD – Stand aside

USD/CAD – 1.3369

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       :

Exit short entered at 1.3400,

Position: – Short at 1.3400

Target:  –

Stop: –

New strategy             :

Stand aside

Position: –

Target:  –


Although the greenback retreated after meeting resistance at 1.3415 yesterday and weakness to 1.3326 support cannot be ruled out, break there is needed to revive bearishness, bring retest of said last week’s low at 1.3264, below there would add credence to our view that top has been made at 1.3535 earlier this month, bring further fall to 1.3235-40 (61.8% Fibonacci retracement of 1.3056-1.3535) but previous resistance at 1.3210 would hold due to loss of downward momentum.

On the upside, whilst recovery to 1.3400 cannot be ruled out, a firm break above 1.3415 is needed to signal low has been formed at 1.3264 last week, bring a stronger rebound to 1.3450 and possibly test of resistance at 1.3479 but only break of 1.3495 resistance would indicate the pullback from 1.3535 has ended and bring retest of this level later. As near term outlook is still mixed, would be prudent to stand aside in the meantime.

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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