AUDCAD has recently double bottomed so we can assume that buyers are stepping in. From an Elliott Wave perspective, we have started the bullish wave and we've seen Wave 1 and now currently in Wave 2, which is an ABC correction.
We are currently on the C leg of the correction. We just need to wait for price to create some sort of bullish reversal on lower timeframe and enter. The invalidation level for this setup is the structure level. Wave 2 shouldn't go beyond the start of wave 1.
Trade Idea: - Watch for lower timeframe bullish reversal patterns such as trendline break, BOS, MACD/RSI etc/ - Enter with stops below the structure level - For confirmation, you can wait for the red trendline to break. This method would require a bigger SL so just be aware of that - Targets: 0.914 (210pips), 0.95 (580pips), hold a small position for a swing trade
Best thing about this trade is that we're at the bottom so we can have a clear invalidation level!