HomeTrade IdeasElliott Wave DailyTrade Idea: USD/CAD - Hold short entered at 1.3340

Trade Idea: USD/CAD – Hold short entered at 1.3340

USD/CAD – 1.3337

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       :

Sold at 1.3340, Target: 1.3200, Stop: 1.3400

Position: – Short at 1.3340

Target:  – 1.3200

Stop: – 1.3400

New strategy             :

Hold short entered at 1.3340, Target: 1.3200, Stop: 1.3400

Position: – Short at 1.3340

Target:  – 1.3200

Stop:- 1.3400

As the greenback rebounded after holding above indicated previous support at 1.3264, suggesting further consolidation would be seen, however, reckon upside would be limited to 1.3370 and bring another decline, below said support at 1.3264 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) and then 1.3200-10, however, oversold condition should limit downside and reckon 1.3170 would hold from here.

In view of this, we are holding on to our short position entered at 1.3340. Above 1.3400 would risk the stop resistance at 1.3415 but break there is needed to signal low is formed and shift risk back to upside for a stronger rebound to 1.3450 and possibly test of resistance at 1.3479, however, only break of 1.3495 resistance would indicate the pullback from 1.3535 has ended and bring retest of this level 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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