USD/CAD Elliott Wave Since our last analysis the USD/CAD pair has been trading downwards, just like we expected, corrective wave 2 (coloured green) of the final (5) wave (coloured blue) has been developing. During the Monday’s Asian and European sessions we could observe ascending movement from 1.0071 towards 1.0095 level and we can consider this move as the end of the wave 2 (coloured green). Therefore, during the New York session when development of wave 3 started this major currency did not manage to hold this level and the price has reached to a new two-day low at 1.0063 level. At the moment the USD/CAD pair is trading around 1.0060 and we expect to see the continuation of the bearish movement in the next few sessions. In accordance with our wave rules and taking into account that wave 3 should retrace 161.8% of the wave 1, we can define the potential targets with measuring wave 1 with take profit at 0.9996 (161.8 % of wave 1). To reduce the risk, we can use resistance at 1.0096 as stop loss. Support and Resistance (S3) 1.0024 (S2) 1.0043 (S1) 1.0056 (PP) 1.0075 (R1) 1.0088 (R2) 1.0107 (R3) 1.0120 Trading forecast Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why short positions at level 1.0050 with stop loss at 1.096 and take profit at 0.9996 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 2 (coloured green) of the final (5) wave (coloured blue) has been developing. During the Monday’s Asian and European sessions we could observe ascending movement from 1.0071 towards 1.0095 level and we can consider this move as the end of the wave 2 (coloured green). Therefore, during the New York session when development of wave 3 started this major currency did not manage to hold this level and the price has reached to a new two-day low at 1.0063 level. At the moment the USD/CAD pair is trading around 1.0060 and we expect to see the continuation of the bearish movement in the next few sessions. In accordance with our wave rules and taking into account that wave 3 should retrace 161.8% of the wave 1, we can define the potential targets with measuring wave 1 with take profit at 0.9996 (161.8 % of wave 1). To reduce the risk, we can use resistance at 1.0096 as stop loss.
Support and Resistance
(S3) 1.0024 (S2) 1.0043 (S1) 1.0056 (PP) 1.0075 (R1) 1.0088 (R2) 1.0107 (R3) 1.0120
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why short positions at level 1.0050 with stop loss at 1.096 and take profit at 0.9996 are recommended.
The material has been provided by InstaForex Company – www.instaforex.com
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