USD/CAD Elliott Wave For the last few days the USD/CAD pair has been trading downwards, impulsive wave .iii (coloured blue) of the bigger wave i (coloured blue) has been developing. Yesterday, during the Asian and European sessions, we could observe descending movements from 1.0644 towards the 1.0610 level. Therefore, during the New York session this commodity pair continued trading downwards and the price reached the 1.0600 level. At the moment, the USD/CAD pair is trading around 1.0610, and we are looking for more bearish movements in the next few sessions. In accordance with our wave rules and taking into account that wave 3 should retrace 161.8% of wave 1, we can define the potential targets with measuring wave 1 with take profit at 1.0537 (161.8% of wave 1). To reduce the risk, we can use invalidation point at the 1.0645 level as stop loss.
Alternate count: We can count the move from the highs just as A-B-C correction and if this is true we must go with an idea that b wave (coloured red) is still incomplete cycle. This count will become valid when the price break the 1.0645 level.
Support and Resistance (S3) 1.0542, (S2) 1.0571, (S1) 1.0586, (PP) 1.0615, (R1) 1.0630, (R2) 1.0659, (R3) 1.0674.
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 1.0620 with stop loss at 1.0645 and take profit at 1.0537 are recommended.
The material has been provided by InstaForex Company – www.instaforex.com
USD/CAD Elliott Wave
For the last few days the USD/CAD pair has been trading downwards, impulsive wave .iii (coloured blue) of the bigger wave i (coloured blue) has been developing. Yesterday, during the Asian and European sessions, we could observe descending movements from 1.0644 towards the 1.0610 level. Therefore, during the New York session this commodity pair continued trading downwards and the price reached the 1.0600 level. At the moment, the USD/CAD pair is trading around 1.0610, and we are looking for more bearish movements in the next few sessions. In accordance with our wave rules and taking into account that wave 3 should retrace 161.8% of wave 1, we can define the potential targets with measuring wave 1 with take profit at 1.0537 (161.8% of wave 1). To reduce the risk, we can use invalidation point at the 1.0645 level as stop loss.
Alternate count: We can count the move from the highs just as A-B-C correction and if this is true we must go with an idea that b wave (coloured red) is still incomplete cycle. This count will become valid when the price break the 1.0645 level.
Support and Resistance
(S3) 1.0542, (S2) 1.0571, (S1) 1.0586, (PP) 1.0615, (R1) 1.0630, (R2) 1.0659, (R3) 1.0674.
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 1.0620 with stop loss at 1.0645 and take profit at 1.0537 are recommended.
The material has been provided by InstaForex Company – www.instaforex.com
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