Elliott Wave Analysis of USD/CAD for January 17, 2014
January 17, 2014 2:15 pm
USD/CAD Elliott Wave
For the last few days, the USD/CAD pair has been trading downwards, corrective wave (b) (coloured red) of thebigger wave [y] (coloured green) has been developing. In the 1-hour chart above, you can see that we are trackingdownward move from 1.0990 as FLAT correction inside wave (b) (coloured red). While the price stays below the end ofthe wave (a) (coloured red) at the 1.0990, we should look only for a selling opportunity. Next fresh signal thatcan offer as new entry point will be a break below 1.0950-1.0940 area. In accordance with our wave rules andtaking into account that wave (b) should retrace 50% of wave (a), we can define the potential targets withmeasuring wave (a) with take profit at 1.0791 (50% of wave (a)). Swing traders should wait for the end of the(b) wave (coloured red) before they enter a long positions.
Proceeding from Elliott Wave rules today, the trend is expected to begin downward movements. That is why shortpositions at the level of 1.0950 with stop loss at 1.0990 and take profit at 1.0791 are recommended.
The material has been provided by InstaForex Company – www.instaforex.com
USD/CAD Elliott Wave
For the last few days, the USD/CAD pair has been trading downwards, corrective wave (b) (coloured red) of thebigger wave [y] (coloured green) has been developing. In the 1-hour chart above, you can see that we are trackingdownward move from 1.0990 as FLAT correction inside wave (b) (coloured red). While the price stays below the end ofthe wave (a) (coloured red) at the 1.0990, we should look only for a selling opportunity. Next fresh signal thatcan offer as new entry point will be a break below 1.0950-1.0940 area. In accordance with our wave rules andtaking into account that wave (b) should retrace 50% of wave (a), we can define the potential targets withmeasuring wave (a) with take profit at 1.0791 (50% of wave (a)). Swing traders should wait for the end of the(b) wave (coloured red) before they enter a long positions.
Support and Resistance
(S3) 1.0844 (S2) 1.0844 (S1) 1.0902 (PP) 1.0932 (R1) 1.0960 (R2) 1.0990 (R3) 1.1018
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin downward movements. That is why shortpositions at the level of 1.0950 with stop loss at 1.0990 and take profit at 1.0791 are recommended.
The material has been provided by InstaForex Company – www.instaforex.com
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