USD/CAD Elliott Wave Since our last analyses the USD/CAD pair has been trading downwards, ending diagonal in the final wave [5] (coloured red) of the bigger wave C (coloured green) has been developing. During the Wednesday’s Asian and European sessions we could observe descending movement from 1.0215 towards the 1.0153 level, and we can consider this move as the end of the sub-wave 1 (coloured blue) of the wave [5] (coloured red). Therefore, during the early New York session when development of the sub-wave 2 (coloured blue) started, this major currency did not manage to hold bearish mood and the price has retraced all the way to 1.0217 level. At the moment the USD/CAD pair is trading around 1.0167 area and we expect to see the price lower in the next few days. In accordance with our wave rules and taking into account that wave 5 should retrace 61.8% of wave 3, we can define the potential targets with measuring wave 3 with take profit at 1.0127 (61.8% of wave 3). To reduce the risk, we can use invalidation point at 1.0226 level as stop loss. Support and Resistance (S3) 1.0109 (S2) 1.0131 (S1) 1.0171 (PP) 1.0193 (R1) 1.0233 (R2) 1.0255 (R3) 1.0295 Trading forecast Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why short positions at level 1.0170 with stop loss at 1.0226 and take profit at 1.0127 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 downwards, ending diagonal in the final wave [5] (coloured red) of the bigger wave C (coloured green) has been developing. During the Wednesday’s Asian and European sessions we could observe descending movement from 1.0215 towards the 1.0153 level, and we can consider this move as the end of the sub-wave 1 (coloured blue) of the wave [5] (coloured red). Therefore, during the early New York session when development of the sub-wave 2 (coloured blue) started, this major currency did not manage to hold bearish mood and the price has retraced all the way to 1.0217 level. At the moment the USD/CAD pair is trading around 1.0167 area and we expect to see the price lower in the next few days. In accordance with our wave rules and taking into account that wave 5 should retrace 61.8% of wave 3, we can define the potential targets with measuring wave 3 with take profit at 1.0127 (61.8% of wave 3). To reduce the risk, we can use invalidation point at 1.0226 level as stop loss.
Support and Resistance
(S3) 1.0109 (S2) 1.0131 (S1) 1.0171 (PP) 1.0193 (R1) 1.0233 (R2) 1.0255 (R3) 1.0295
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why short positions at level 1.0170 with stop loss at 1.0226 and take profit at 1.0127 are recommended.
The material has been provided by InstaForex Company – www.instaforex.com
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