After price has cleared the liquidity below the Feb. 13 and 14 lows, i believe price would rally up to clear the liquidity at Feb 19 and 20 highs... Wait till london open before execution, price might show a sweep off the asian low... WE REACT TO PRICE AND NOT PREDICT
I've spotted a demand zone for USDCAD on a H1 time frame chart. The demand level range is between 1.33687-1.33638 (very narrow, so pay attention to the spread). If the price retraces to this zone, I'll be considering a long position. My target is set at 1.3384, with a potential for a 2.9 R reward.
I plan to exit the trade if there's a 1 hour candle closing below...
Again thanks to @JoeChampions for this idea, because I haven't seen this pattern for a while now. He makes also good technical analysis so keep up the work man!
PS: stoploss and take profits are written on the chart :)
USDCAD was finally able to break through the consolidation where it has been trading for two weeks, having a bullish breakout has activated the P1 from the previous analysis, currently fighting against the last line of defense established by the 200 DMA.
MACD shows a bearish divergence, giving the trade some sour tone. With the trade already running, we must move...
Illustrated before you is the full Elliot Waves Count and analysis on UC
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As we can see, price has been bullish within a channel since last year.
Price has made a hard corrective impulse to test support of trend channel.
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Wait for confirmations during this week before entering LONG
Impulsive Wave (v) could be in preparation!
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Best of luck
Felipe
