Thu, Mar 30, 2023 @ 02:11 GMT
HomeTrade IdeasElliott Wave DailyTrade Idea: USD/CAD - Stand aside

Trade Idea: USD/CAD – Stand aside

USD/CAD – 1.3288

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

New strategy             :

Stand aside

Position: –

Target:  –


Although the greenback has fallen again today and test of previous support at 1.3264 is likely, loss of near term downward momentum should prevent sharp fall how 1.3235-40 (61.8% Fibonacci retracement of 1.3056-1.3535) and reckon 1.3200 would hold on first testing, risk from there has increased for a rebound to take place soon.

In view of this, would not chase this fall here and would be prudent to stand aside for now. Above 1.3355-60 would bring rebound to 1.3380-85, break there would bring test of 1.3430-35 but a breach there is needed to revive bullishness and bring retest of 1.3456 resistance, break there would add credence to our view that the correction from 1.3535 has ended and bring further gain to 1.3495-00 but break there is needed to signal upmove has resumed for retest of 1.3535, once this level is penetrated, this would extend recent recent upmove from 1.2969 to 1.3575-80 but previous chart resistance at 1.3599 should hold on first testing.

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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