NZDCAD EW Analysis: Short Trade Setup

Hi Traders,
NZDCAD seems to have completed a 5-3 (impulse-correction) cycle. Prices decline in five-wave from the top in wave (a), followed by a three-wave corrective zigzag in wave (b). The pullback retraced almost 78.6% of the sell-off, and the price action becomes weaker as it approaches the top.

According to Elliot Wave theory, once a 5-3 cycle is completed, the market resumes in the direction of the impulse which is bearish in the case.
- Target below wave (a) low is plausible in the weeks ahead
- The setup will be invalidated if the price trade above wave (a) high, red line on the chart.
- Execution from the market price ideal as long as stop-loss is maintained above high.
- The break of the green lines will further confirm the bears have indeed resumed.

Best of luck on the chart.
Regards,
Veejahbee.