Elliott Wave Analysis of USD/CAD for February 25, 2014
February 25, 2014 1:40 pm
USD/CAD Elliott Wave
Since our last analysis, the USD/CAD pair has been trading downwards, just like we expected, corrective wave [b] (coloured black) of the bigger wave A (coloured blue) has been developing. In the chart above, we can see that we are counting desceding movements from the 1.1194 towards 1.1050 as the (a)-(b)-(c) of the bigger wave [b], we should see end of the [b] wave in the next few sessions and that’s the reason why we want to look for buying opportunity against the low at the 1.0905 level. In accordance with our wave rules and taking into account that wave [c] should extend 100% of wave [a], we can define the potential targets with measuring wave [a] with take profit at 1.1330 (100% of wave [a]). Swing term traders can also try this position, but they should hold the longs all the way towards 1.1512 level, where we think Z wave (coloured red) should end the cycle.
Proceeding from Elliott Wave rules today, the trend is expected to begin upward movements. That is why short positions at the level of 1.1040 with stop loss at 1.0905 and take profit at 1.1330 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 downwards, just like we expected, corrective wave [b] (coloured black) of the bigger wave A (coloured blue) has been developing. In the chart above, we can see that we are counting desceding movements from the 1.1194 towards 1.1050 as the (a)-(b)-(c) of the bigger wave [b], we should see end of the [b] wave in the next few sessions and that’s the reason why we want to look for buying opportunity against the low at the 1.0905 level. In accordance with our wave rules and taking into account that wave [c] should extend 100% of wave [a], we can define the potential targets with measuring wave [a] with take profit at 1.1330 (100% of wave [a]). Swing term traders can also try this position, but they should hold the longs all the way towards 1.1512 level, where we think Z wave (coloured red) should end the cycle.
Support and Resistance
(S3) 1.0943, (S2) 1.0998, (S1) 1.1031, (PP) 1.1086, (R1) 1.1119, (R2) 1.1174, (R3) 1.1207.
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin upward movements. That is why short positions at the level of 1.1040 with stop loss at 1.0905 and take profit at 1.1330 are recommended.
The material has been provided by InstaForex Company – www.instaforex.com
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