Top Trade Idea For February 24th, 2015 – USD/CAD
By Gregor Horvat on Feb 24, 2015 04:00:49 GMT
USDCAD has turned down three weeks back, when pair accomplished a sharp five wave move within an extended red wave 3). If that is the case then traders must be aware of more upside once a corrective wave 4) is complete. Usually wave 4) will retrace for 38.2% compared to wave 3), which in our case comes in near 1.2200, but based on latest structure that looks like a triangle, a fall may not be so deep as firstly thought.
USDCAD Daily Elliott Wave Analysis
We know that triangles are continuation patterns, which means that we expect more gains on USDCAD. Ideally pair will break to new highs at the start of March and reach 1.3000 area. With that said, we are interested to look for longs once the pattern is completed. Well, triangle are five wave patterns that we label them within A-B-C-D-E letters. For now, wave E is still missing so another pullback to the lower side of a range may follow in session ahead. That pullback could then be ideal for longs entries.
Trade idea can be then as follows;
Buy limit USDCAD at 1.2430 with stops at 1.2340 with target at 1.2800.
Move stops to breakeven when prices reaches risk-reward 1:1.
Trade should be canceled if price breaks above 1.2698 (wave B swing high)
USDCAD 4H Elliott Wave Analysis
In our last update we were looking for USDCAD shorts, which missed 1.2300 target for nearly 60 pips. That patterns already unfolded, so any shorts from that time should be closed already.
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About Gregor Horvat
Gregor Horvat, based in Slovenia, has been in the forex markets since 2003. He is a technical analyst and individual trader who has worked for Capital Forex Group and TheLFB.com. He also is founder of forex services on www.ew-forecast.com. EW-Forecast.com provides technical analysis of the financial markets, highlighting behavioral patterns based on the Elliott Wave Principle (EWP). Website: http://www.ew-forecast.com/
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