USD/CAD Elliott Wave Since our last analysis the USD/CAD pair has been trading sideways, impulsive wave (3) (coloured blue) of the bigger wave C (coloured red) has finished developing and we are currently at the start of the corrective wave (4) (coloured blue). Yesterday, during the Asian session we could observe descending movement from 1.0075 towards the 1.0051 level and we can consider this movement as the end of the wave (3) (coloured blue). Therefore, during the European session when developing of the wave (4) starts, this major pair did not manage to hold this levels and price pushed higher to the 1.0100 level. At the moment the USD/CAD pair is trading around 1.0082 area and we are expecting to see the price above 1.0130 in the next few sessions. In accordance with our wave rules and taking into account that the wave 4 should retrace 38.2% of the waves 3, we can define the potential targets measuring wave 3 with take profit at 1.0139 (38.2 % of wave 3). To reduce the risk, we can use support level at 1.0050 as stop loss. Support and resistance (S3) 1.0005 (S2) 1.0028 (S1) 1.0054 (PP) 1.0077 (R1) 1.0103 (R2) 1.0126 (R3) 1.0152 Trading forecast Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0090 with stop loss at 1.0050 and take profit at 1.0139 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 sideways, impulsive wave (3) (coloured blue) of the bigger wave C (coloured red) has finished developing and we are currently at the start of the corrective wave (4) (coloured blue). Yesterday, during the Asian session we could observe descending movement from 1.0075 towards the 1.0051 level and we can consider this movement as the end of the wave (3) (coloured blue). Therefore, during the European session when developing of the wave (4) starts, this major pair did not manage to hold this levels and price pushed higher to the 1.0100 level. At the moment the USD/CAD pair is trading around 1.0082 area and we are expecting to see the price above 1.0130 in the next few sessions. In accordance with our wave rules and taking into account that the wave 4 should retrace 38.2% of the waves 3, we can define the potential targets measuring wave 3 with take profit at 1.0139 (38.2 % of wave 3). To reduce the risk, we can use support level at 1.0050 as stop loss.
Support and resistance
(S3) 1.0005 (S2) 1.0028 (S1) 1.0054 (PP) 1.0077 (R1) 1.0103 (R2) 1.0126 (R3) 1.0152
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0090 with stop loss at 1.0050 and take profit at 1.0139 are recommended.
The material has been provided by InstaForex Company – www.instaforex.com
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