USDCAD is another instrument that has given us trading opportunity lately . Break of August 20th high made bullish sequence from the June 1st low. The price structure is suggesting further rally within that cycle. We recommended members to avoid selling the pair at this stage while favoring the long side. Recently the pair made clear 3 waves pull back and found buyers at the blue box as we expected. In this technical blog we’re going to take a quick look at the charts of USDCAD published in members area of the website and explain the Elliott Wave structure and trading strategy.
USDCAD Elliott Wave 4 Hour Chart 01.11.2022
Current view suggests USCAD is doing (B) blue correction. Pull back is showing incomplete lower low sequences, suggesting more downside toward blue box area : 1.247-1.2282 . As the main trend is bullish we expect buyers to appear at the blue box for 3 waves bounce at least. Strategy is the same as always, once bounce reaches 50 Fibs against the X red high, we will make long position risk free ( put SL at BE). Invalidation for the trade would be break of marked invalidation level 1.2282.
As our members know, Blue Boxes are no enemy areas , giving us 85% chance to get a bounce.
You can learn more about Elliott Wave Patterns at our Free Elliott Wave Educational Web Page.
USDCAD Elliott Wave 4 Hour Chart 01.15.2022
USDCAD has found buyers at the marked zone and we are getting reaction from there. Bounce is still shallow, but at this stage we already call (B) pull back completed at 1.2447. We are expecting to see further separation from the current low.
USDCAD Elliott Wave 4 Hour Chart 01.30.2022
The rally from the blue box reached and exceeded 50 fibs against the connector. Consequently members who have taken the long trades at the blue box now enjoying profits in a risk free trades. Now we would need to see break of (A) blue peak in order to confirm next leg up is in progress.
Keep in mind that market is dynamic and presented view could have changed in the mean time. You can check most recent charts in the membership area of the site. Best instruments to trade are those having incomplete bullish or bearish swings sequences. We put them in Sequence Report and best among them are shown in the Live Trading Room.
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