News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Guest Commentary: Post-Corrective Long Set-up in USD/CAD

Guest Commentary: Post-Corrective Long Set-up in USD/CAD

Todd Gordon, Technical Strategist

Talking Points:

  • 5-Wave Elliott Rally in USD/CAD
  • Textbook 3-Wave Corrective Formation
  • New Potential Long Set-up in USD/CAD

After falling quite substantially in April, USDCAD rallied in five clean waves from the early-May low. The fact that the rise has unfolded in five waves indicates an underlying strength in the market that should carry prices higher for some days to come.

Following the five-wave rise, USDCAD has pulled back into a Fibonacci support zone in a three-wave corrective pattern often deemed an “expanded flat.”

Guest Commentary: Post-Corrective Long Set-up in USD/CAD

Elliott wave patterns and a correction near key Fibonacci support help inspire a potential long set-up in USD/CAD.

Now, the wave-2 correction sets up a long trade as part of a wave-3 rally towards 1.1000. Specifically, the trade is to buy USDCAD at 1.0855, place a stop at 1.0805, and use an upside target of 1.1010

By Todd Gordon, founder, TradingAnalysis.com

Receive three free months of premium trade signals and analysis by visiting TradingAnalysis.com.

Disclaimer: Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES