USD/CAD Elliott Wave Since our last analysis, the USD/CAD pair has been trading upwards, just like we expected, impulsive wave .v (coloured black) of the bigger wave (c) (coloured blue) has been developing. Yesterday, during the Asian session we could observe descending movement from 10.648 towards the 1.0629 level and we can consider this move as the end of the FLAT .iv wave (coloured black). Therefore, during the European and New York session this commodity pair did not manage to hold around the lows and price has reached a new highs around 1.0670 level. While price stay below 1.0670 we can say that v wave is over and that we are already in the c wave, but break above this level will make me to think that final fifth wave is going for Ending diagonal and if this is a case we can see 1.0700 before price turn lower. In accordance with our wave rules and taking into account that wave X should retrace 50% of wave W, we can define the potential targets with measuring wave W with take profit at 1.0123 (50% of wave W). To reduce the risk, we can use invalidation point at 1.0700 level as stop loss. Support and Resistance (S3) 1.0585 (S2) 1.0608 (S1) 1.0627 (PP) 1.0650 (R1) 1.0669 (R2) 1.0692 (R3) 1.0711 Trading forecast Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movements. That is why short position at level 1.0600 with stop loss at 1.0700 and take profit at 1.0123 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 upwards, just like we expected, impulsive wave .v (coloured black) of the bigger wave (c) (coloured blue) has been developing. Yesterday, during the Asian session we could observe descending movement from 10.648 towards the 1.0629 level and we can consider this move as the end of the FLAT .iv wave (coloured black). Therefore, during the European and New York session this commodity pair did not manage to hold around the lows and price has reached a new highs around 1.0670 level. While price stay below 1.0670 we can say that v wave is over and that we are already in the c wave, but break above this level will make me to think that final fifth wave is going for Ending diagonal and if this is a case we can see 1.0700 before price turn lower. In accordance with our wave rules and taking into account that wave X should retrace 50% of wave W, we can define the potential targets with measuring wave W with take profit at 1.0123 (50% of wave W). To reduce the risk, we can use invalidation point at 1.0700 level as stop loss.
Support and Resistance
(S3) 1.0585 (S2) 1.0608 (S1) 1.0627 (PP) 1.0650 (R1) 1.0669 (R2) 1.0692 (R3) 1.0711
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movements. That is why short position at level 1.0600 with stop loss at 1.0700 and take profit at 1.0123 are recommended.
The material has been provided by InstaForex Company – www.instaforex.com
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