USD/CAD Elliott Wave Since our last analyses the USD/CAD pair has been trading slightly higher, impulsive wave 5 (coloured blue) of the bigger wave [1] (coloured red) has been developing. Yesterday, during the Asian session we could observe descending movement from 1.0360 towards the 1.0330 level and we can consider this move as the end of the wave 4 (coloured blue). Therefore, during the European & New York session when developing of the final wave 5 starts this commodity currency did not manage to stay in a bearish mood and price has retraced to 1.0434 level. At the moment, we are still counting the corrective wave 4 (coloured blue) as the finished flat correction, but we must take into consideration that we might see one more wave lower for the end of the wave 4. In accordance with our wave rules and taking into account that wave 5 should retrace 76.4% of wave 3, we can define the potential targets with measuring wave 3 with take profit at 1.0637 (76.4% of wave 3). To reduce the risk, we can use invalidation point at 1.0200 level as stop loss.
Support and Resistance (S3) 1.0156 (S2) 1.0240 (S1) 1.0302 (PP) 1.0386 (R1) 1.0448 (R2) 1.0532 (R3) 1.0594
Trading forecast Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0380 with stop loss at 1.0250 and take profit at 1.0637 are recommended.
The material has been provided by InstaForex Company – www.instaforex.com
USD/CAD Elliott Wave
Since our last analyses the USD/CAD pair has been trading slightly higher, impulsive wave 5 (coloured blue) of the bigger wave [1] (coloured red) has been developing. Yesterday, during the Asian session we could observe descending movement from 1.0360 towards the 1.0330 level and we can consider this move as the end of the wave 4 (coloured blue). Therefore, during the European & New York session when developing of the final wave 5 starts this commodity currency did not manage to stay in a bearish mood and price has retraced to 1.0434 level. At the moment, we are still counting the corrective wave 4 (coloured blue) as the finished flat correction, but we must take into consideration that we might see one more wave lower for the end of the wave 4. In accordance with our wave rules and taking into account that wave 5 should retrace 76.4% of wave 3, we can define the potential targets with measuring wave 3 with take profit at 1.0637 (76.4% of wave 3). To reduce the risk, we can use invalidation point at 1.0200 level as stop loss.
Support and Resistance
(S3) 1.0156 (S2) 1.0240 (S1) 1.0302 (PP) 1.0386 (R1) 1.0448 (R2) 1.0532 (R3) 1.0594
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0380 with stop loss at 1.0250 and take profit at 1.0637 are recommended.
The material has been provided by InstaForex Company – www.instaforex.com
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