USD/CAD Elliott Wave Since our last analysis the USD/CAD pair was trading upwards, just like we expected, impulsive wave (3) (coloured pink) of the bigger wave 3 (coloured blue) was developing. Yesterday, during the Asian and European sessions we could observe strong descending movement from 1.0257 towards the 1.0197 level and we can consider this bearish move as the end of the final corrective (C) wave (coloured pink) of the bigger 2 wave (coloured blue). Therefore, during the early New York session this currency did not manage to hold this levels and the price pushed back to 1.0251 level. We can consider this move as the end of the sub-wave (1) of the 3 wave. Today the USD/CAD pair is trading around 1.0255 area and we expect to see the price at 1.0365 level next week. In accordance with our wave rules and taking into account that the wave 3 should retrace 161.8% of the waves 1, we can define the potential targets with measuring wave 1 with take profit at 1.0370 (161.8% of wave 1). To reduce the risk, we can use invalidation at 1.0197 level as stop loss.
Support and Resistance (S3) 1.0147 (S2) 1.0173 (S1) 1.0210 (PP) 1.0236 (R1) 1.0273 (R2) 1.0299 (R3) 1.0336
Trading forecast Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0260 with stop loss at 1.0197 and take profit at 1.0370 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 was trading upwards, just like we expected, impulsive wave (3) (coloured pink) of the bigger wave 3 (coloured blue) was developing. Yesterday, during the Asian and European sessions we could observe strong descending movement from 1.0257 towards the 1.0197 level and we can consider this bearish move as the end of the final corrective (C) wave (coloured pink) of the bigger 2 wave (coloured blue). Therefore, during the early New York session this currency did not manage to hold this levels and the price pushed back to 1.0251 level. We can consider this move as the end of the sub-wave (1) of the 3 wave. Today the USD/CAD pair is trading around 1.0255 area and we expect to see the price at 1.0365 level next week. In accordance with our wave rules and taking into account that the wave 3 should retrace 161.8% of the waves 1, we can define the potential targets with measuring wave 1 with take profit at 1.0370 (161.8% of wave 1). To reduce the risk, we can use invalidation at 1.0197 level as stop loss.
Support and Resistance
(S3) 1.0147 (S2) 1.0173 (S1) 1.0210 (PP) 1.0236 (R1) 1.0273 (R2) 1.0299 (R3) 1.0336
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0260 with stop loss at 1.0197 and take profit at 1.0370 are recommended.
The material has been provided by InstaForex Company – www.instaforex.com
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