Elliott wave analysis of USD/CAD for December 30, 2013
December 30, 2013 11:45 am
USD/CAD Elliott Wave
Last week, the USD/CAD pair has been trading upwards, impulsive wave iii (coloured blue) of the bigger wave (c) (coloured red) has been developing. During the Friday’s sessions, we could observe strong ascending movements from 1.0618 towards 1.0717 level and in the chart above you can see that we are labeling this strong move as extended wave iii (coloured blue). Today this commodity pair did not manage to hold the highs and the price is trading currently around 1.0708 level, we are expecting to see one more push higher from 1.0685 (38.2% of iv vs iii). In accordance with our wave rules and taking into account that wave 5 should retrace 161.8% of wave 4, we can define the potential targets with measuring wave 4 with take profit at 1.0750 (161.8% of wave 4).To protect long positions we can use invalidation level at the 1.0670 level.
Proceeding from Elliott Wave rules today, the trend is expected to begin upward movements. That is why long positions at the level of 1.0685 with stop loss at 1.0670 and take profit at 1.0750 are recommended.
The material has been provided by InstaForex Company – www.instaforex.com
USD/CAD Elliott Wave
Last week, the USD/CAD pair has been trading upwards, impulsive wave iii (coloured blue) of the bigger wave (c) (coloured red) has been developing. During the Friday’s sessions, we could observe strong ascending movements from 1.0618 towards 1.0717 level and in the chart above you can see that we are labeling this strong move as extended wave iii (coloured blue). Today this commodity pair did not manage to hold the highs and the price is trading currently around 1.0708 level, we are expecting to see one more push higher from 1.0685 (38.2% of iv vs iii). In accordance with our wave rules and taking into account that wave 5 should retrace 161.8% of wave 4, we can define the potential targets with measuring wave 4 with take profit at 1.0750 (161.8% of wave 4).To protect long positions we can use invalidation level at the 1.0670 level.
Support and Resistance
(S3) 1.0543 (S2) 1.0580 (S1) 1.0643 (PP) 1.0680 (R1) 1.0743 (R2) 1.0780 (R3) 1.0843
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin upward movements. That is why long positions at the level of 1.0685 with stop loss at 1.0670 and take profit at 1.0750 are recommended.
The material has been provided by InstaForex Company – www.instaforex.com
Related Posts: