AUDCAD Short on Elliot Wave Correction
AUDCAD just finished a 5 step Elliot Wave, and is currently on it's leg A of it's ABC corrective action.
Price broke through the 1.01006 S/R line, indicating the 1st corrective wave is still progressing.
First wave corrective action will probably stop ~ 0.997 price, as this is a major S/R line, and also 0.5 Fib
Price expected to bounce off this line into the second wave corrective pattern (B).
MACD crossed over on May 5th, strongly indicating this is still in a downtrend corrective pattern.
Price has also broke through the 4h Ichimoku Cloud.
Going into the 1 hour chart to determine an entry point, the 1.01006 S/R has just been double tested, and held, indicating a market entry. Short at market, stop loss at 1.01764 (0.236 Fib level), take profit at 0.9972. 1.2 risk/reward.
Aggressive entry: Market entry on short, take profit at ~0.9972, re-enter the market long after indication corrective wave A is completed for long position on wave B. ~100 pip gain from short, unsure of wave B pip gain.
Conservative entry: Wait for price to reach ~0.9972 and indicate a corrective wave upwards, buying long. Unsure of wave B pip gain.
Price broke through the 1.01006 S/R line, indicating the 1st corrective wave is still progressing.
First wave corrective action will probably stop ~ 0.997 price, as this is a major S/R line, and also 0.5 Fib
Price expected to bounce off this line into the second wave corrective pattern (B).
MACD crossed over on May 5th, strongly indicating this is still in a downtrend corrective pattern.
Price has also broke through the 4h Ichimoku Cloud.
Going into the 1 hour chart to determine an entry point, the 1.01006 S/R has just been double tested, and held, indicating a market entry. Short at market, stop loss at 1.01764 (0.236 Fib level), take profit at 0.9972. 1.2 risk/reward.
Aggressive entry: Market entry on short, take profit at ~0.9972, re-enter the market long after indication corrective wave A is completed for long position on wave B. ~100 pip gain from short, unsure of wave B pip gain.
Conservative entry: Wait for price to reach ~0.9972 and indicate a corrective wave upwards, buying long. Unsure of wave B pip gain.