Elliott Wave Analysis of USD/CAD for January 29, 2014
January 29, 2014 8:10 am
USD/CAD Elliott Wave
Since our last analysis the USD/CAD pair has extend upward movements, just like we expected, corrective wave (c) (coloured red) of the bigger wave [y] (coloured green) has been developing. In the 1-hour chart we can see that we are tracking ascending movements from the 1.0588 towards the 1.1175 level as the corrective wave [y] (coloured green). We need to wait for a strong break below the lower trend line from the 1-hour chart that will give as fresh selling signal against the high at the chart. In accordance with our wave rules and taking into account that wave X2 should retrace 50-61.8% of wave Y, we can define the potential targets with measuring wave Y with take profit at 1.0895-1.0825 (50-61.8% of wave Y).
Proceeding from Elliott Wave rules today, the trend is expected to begin downward movements. That is why short positions at the level of 1.1100 with stop loss at 1.1200 and take profit at 1.0895 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 extend upward movements, just like we expected, corrective wave (c) (coloured red) of the bigger wave [y] (coloured green) has been developing. In the 1-hour chart we can see that we are tracking ascending movements from the 1.0588 towards the 1.1175 level as the corrective wave [y] (coloured green). We need to wait for a strong break below the lower trend line from the 1-hour chart that will give as fresh selling signal against the high at the chart. In accordance with our wave rules and taking into account that wave X2 should retrace 50-61.8% of wave Y, we can define the potential targets with measuring wave Y with take profit at 1.0895-1.0825 (50-61.8% of wave Y).
Support and Resistance
(S3) 1.0995, (S2) 1.1036, (S1) 1.1094, (PP) 1.1135, (R1) 1.1193, (R2) 1.1234, (R3) 1.1292.
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 1.1100 with stop loss at 1.1200 and take profit at 1.0895 are recommended.
The material has been provided by InstaForex Company – www.instaforex.com
Related Posts: