USD/CAD Elliott Wave Since our last analysis the USD/CAD pair has been trading downwards, just like we expected, corrective wave 2 (coloured green) of the bigger wave (A) (coloured blue) has finished its development. Yesterday, during the Asian and European sessions we could observe descending movement from 1.0132 towards 1.0106 level. Therefore, during the New York session this commodity currency has continued to trade lower and we could observe the price reaching a new daily low at 1.0081 level. We can consider this movement as the end of the wave 2 (coloured green). At the moment the USD/CAD pair is trading around 1.0125 area and we expect to see the price continuing to push higher 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 1.0308 (161.8% of wave 1). To reduce the risk, we can use invalidation point at 1.0080 level as stop loss. Support and Resistance (S3) 1.0029 (S2) 1.0055 (S1) 1.0080 (PP) 1.0106 (R1) 1.0131 (R2) 1.0157 (R3) 1.0182 Trading forecast Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0130 with stop loss at 1.0080 and take profit at 1.0308 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 has been trading downwards, just like we expected, corrective wave 2 (coloured green) of the bigger wave (A) (coloured blue) has finished its development. Yesterday, during the Asian and European sessions we could observe descending movement from 1.0132 towards 1.0106 level. Therefore, during the New York session this commodity currency has continued to trade lower and we could observe the price reaching a new daily low at 1.0081 level. We can consider this movement as the end of the wave 2 (coloured green). At the moment the USD/CAD pair is trading around 1.0125 area and we expect to see the price continuing to push higher 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 1.0308 (161.8% of wave 1). To reduce the risk, we can use invalidation point at 1.0080 level as stop loss.
Support and Resistance
(S3) 1.0029 (S2) 1.0055 (S1) 1.0080 (PP) 1.0106 (R1) 1.0131 (R2) 1.0157 (R3) 1.0182
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0130 with stop loss at 1.0080 and take profit at 1.0308 are recommended.
The material has been provided by InstaForex Company – www.instaforex.com
Related Posts: