The decision of the RBA and RBNZ to hold interest rate at 1.5% and 1.75% respectively made AUDUSD and NZDUSD be in our focus this week. We also checked USDCAD for a bullish continuation move in the last update. The following present trade opportunities in AUDUSD, NZDUSD and USDCAD with our 9 February Elliott wave trade ideas.
9 February, AtoZForex – After the rate statement in New Zealand yesterday, price fell to fulfill the second first scenario in our last update. The update described how to use Elliott wave with volatility that come from the RBNZ to our advantage. The scenarios also made us to allow price to ‘breathe’ before the announcement. In the first scenario, we used the chart below.
9 February Elliott wave trade ideas : NZDUSD bearish?
We were expecting a breakout below. After the event, price broke below the trendline as seen in the chart below.
The chart above shows the breakout effect. We may see a little pull back before the bearish drive continues. Price can get to 0.69 or below. This is a good bearish opportunity. This idea will be invalid at 0.7382 where the stop loss can be set.
9 February Elliott wave trade ideas: AUDUSD bearish idea?
Just like in NZDUSD, we also have a bearish bias for AUDUSD based on a complete impulse wave
After price completed the second leg of a long term bullish correction, a good breakout happened upside. As expected, the breakout completed an impulse wave as shown in the chart above. This happened at a critical zone of reversal. A sell at 0.7590 won’t be bad with target at 0.7343. The pattern will be invalid if price rallies further to 0.7717. Stop loss can be placed at 0.7717 if 0.7590 is triggered. Nothing is guaranteed in the market, but often time when price completes an impulse wave, a correction follows.
9 February Elliott wave trade ideas: USDCAD bullish idea
In an intraday update yesterday, we had two scenarios for USDCAD. The two scenarios pointed to further bullish. One with a shallow correction and the other with a deep one. AT this time, none of the scenarios is active or invalidated.
Price completed the first scenario as shown in the chart above. A break above the falling channel will trigger a bullish opportunity to 1.3264 and 1.3350. This scenario will be invalidated below 1.3126. At this point, the second scenario will be our focus.
Do you have other views in contrast to the ones listed or you want to compliment them further? Let’s know by your comment below.
Don’t forget to share this analysis with people that matter to you.