Elliott Wave Analysis of USD/CAD for for February 05, 2014
February 5, 2014 8:00 am
USD/CAD Elliott Wave
Since our last analysis, the USD/CAD pair has been trading downward, just like we expected, corrective wave (c) (coloured red) of the bigger wave [x] (coloured green) has been developing. In the 1-hour chart of the USD/CAD pair, we can observe that price has stayed below the 1.1123 level all time and while this invalidation level stays we are going to look for more downward movements in the last leg lower. In accordance with our wave rules and taking into account that wave [x] should retrace 50% of wave [y], we can define the potential targets with measuring wave [y] with take profit at 1.0900 (50% of wave Y). Swing traders, should wait for this [x] wave to complete the cycle from the 1.1224 level and than we are going to look for a buying opportunity against the 1.0800 level.
Proceeding from Elliott Wave rules today, the trend is expected to begin downward movements. That is why short positions at the level of 1.1070 with stop loss at 1.1150 d take profit at 1.0900 are recommended.
The material has been provided by InstaForex Company – www.instaforex.com
USD/CAD Elliott Wave
Since our last analysis, the USD/CAD pair has been trading downward, just like we expected, corrective wave (c) (coloured red) of the bigger wave [x] (coloured green) has been developing. In the 1-hour chart of the USD/CAD pair, we can observe that price has stayed below the 1.1123 level all time and while this invalidation level stays we are going to look for more downward movements in the last leg lower. In accordance with our wave rules and taking into account that wave [x] should retrace 50% of wave [y], we can define the potential targets with measuring wave [y] with take profit at 1.0900 (50% of wave Y). Swing traders, should wait for this [x] wave to complete the cycle from the 1.1224 level and than we are going to look for a buying opportunity against the 1.0800 level.
Support and Resistance
(S3) 1.0970, (S2) 1.1008, (S1) 1.1045, (PP) 1.1083, (R1) 1.1120, (R2) 1.1158, (R3) 1.1195.
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin downward movements. That is why short positions at the level of 1.1070 with stop loss at 1.1150 d take profit at 1.0900 are recommended.
The material has been provided by InstaForex Company – www.instaforex.com
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