After a strong start last week, the USD/CAD pair has retraced most of gains during Friday’s London and New York sessions, when developing the [ii] start. In the 4-hour chart above, we can see that we are currently retracing the cycle from the 1.1020 level, and we should see the end of the [ii] wave (coloured black) around the 1.1150-1.1120 area, 50-61.8% of the wave [i] length. While price remains above the 1.1020 level, we are going to keep focusing on the buying opportunity in the [iii] wave, that should be over by the end of this week. In accordance with our wave rules and taking into account that wave [iii] should extend 161.8% of wave [i], we can define the potential targets with measuring wave [i] with take profit at 1.1527 (161.8% of wave [i]).
Proceeding from Elliott Wave rules today, the trend is expected to begin upward movements. That is why long positions at the level of 1.1150 with stop loss at 1.1020 and take profit at 1.1527 are recommended.
The material has been provided by InstaForex Company – www.instaforex.com
USD/CAD Elliott Wave
After a strong start last week, the USD/CAD pair has retraced most of gains during Friday’s London and New York sessions, when developing the [ii] start. In the 4-hour chart above, we can see that we are currently retracing the cycle from the 1.1020 level, and we should see the end of the [ii] wave (coloured black) around the 1.1150-1.1120 area, 50-61.8% of the wave [i] length. While price remains above the 1.1020 level, we are going to keep focusing on the buying opportunity in the [iii] wave, that should be over by the end of this week. In accordance with our wave rules and taking into account that wave [iii] should extend 161.8% of wave [i], we can define the potential targets with measuring wave [i] with take profit at 1.1527 (161.8% of wave [i]).
Support and Resistance
(S3) 1.1105, (S2) 1.1143, (S1) 1.1168, (PP) 1.1206, (R1) 1.1231, (R2) 1.1269, (R3) 1.1294.
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin upward movements. That is why long positions at the level of 1.1150 with stop loss at 1.1020 and take profit at 1.1527 are recommended.
The material has been provided by InstaForex Company – www.instaforex.com
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