USD/CAD Elliott Wave Since our last analyses the USD/CAD pair has been trading downwards, corrective wave 4 (coloured blue) of the bigger wave [5] (coloured red) has been developing. Yesterday, during Asian and European sessions we could observe descending movement from 1.0224 towards the 1.0175 level. Therefore, during the New York session this commodity currency has continued trading downwards and the price has reached a new daily low at 1.0147 level (end of the wave 3 blue). At the moment the USD/CAD pair is trading around 1.0170 area and we expect to see the price lower today. 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 1.0120 (61.8% of wave 3). To reduce the risk, we can use invalidation point at 1.0226 level as stop loss. Alternate Count: Corrective Wave (4) (coloured blue) has finished developing at yesterdays low (1.0147). This count will be valid if price push above invalidation point at 1.0226 level. Support and Resistance (S3) 1.0048 (S2) 1.0098 (S1) 1.0126 (PP) 1.0176 (R1) 1.0204 (R2) 1.0254 (R3) 1.0282 Trading forecast Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why short positions at level 1.0160 with stop loss at 1.0226 and take profit at 1.0120 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, corrective wave 4 (coloured blue) of the bigger wave [5] (coloured red) has been developing. Yesterday, during Asian and European sessions we could observe descending movement from 1.0224 towards the 1.0175 level. Therefore, during the New York session this commodity currency has continued trading downwards and the price has reached a new daily low at 1.0147 level (end of the wave 3 blue). At the moment the USD/CAD pair is trading around 1.0170 area and we expect to see the price lower today. 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 1.0120 (61.8% of wave 3). To reduce the risk, we can use invalidation point at 1.0226 level as stop loss.
Alternate Count: Corrective Wave (4) (coloured blue) has finished developing at yesterdays low (1.0147). This count will be valid if price push above invalidation point at 1.0226 level.
Support and Resistance
(S3) 1.0048 (S2) 1.0098 (S1) 1.0126 (PP) 1.0176 (R1) 1.0204 (R2) 1.0254 (R3) 1.0282
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why short positions at level 1.0160 with stop loss at 1.0226 and take profit at 1.0120 are recommended.
The material has been provided by InstaForex Company – www.instaforex.com
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