USDCAD Short

Here is a combination of 2 setups for this pair. On a larger frame we have an Elliot wave, with a bearish crab approaching resistance. The Elliot wave has completed its impulse and has began correction. Price has pushed to the 0.618 retracement level of the first correction wave- which is also within the vicinity of a bearish crab. If this trade comes in, I will hold until support at 1.25 with a trailing stop loss.

Last time I traded a harmonic pattern within an Elliot wave was on the NZDUSD (my first Elliot Wave) and it came with MASSIVE returns! Back in November I drew up an Elliot wave with a bearish butterfly in an almost identical position to this crab. Granted, last time I traded this pattern was during the US Election, where trump was elected and the dollar soared to the stars amidst the promise of loosened tax laws. Albeit, this trade does not come with the fundamental backing of the last, I will still be looking to take a short position following the next bearish batch of candlesticks on the daily time frame *No dropping to the one hour here* Please see the attached ideas for the NZDUSD Elliot Wave, the Bearish Butterfly within the Elliot (both separate) and the previously drawn Elliot wave for this pair which I drew up back in October- 7 MONTHS AGO!!!

Crab ratios
B: 0.382-0.618
C: 0.382-0.886
D: 2.24-3.618
xD: 1.618

Comment:

Price has not hit the D point target for the bearish harmonic, but the elliot wave is still in play!

Look at the USD/CAD idea below for a description.

Comment:

Once the trend line is broken, I will look to take a short position until 1.25. A return of over 1000 pips!

Trade closed: target reached:

1.25 arget has been reached- the Elliot Wave principle strikes again!