USD/CAD Elliott Wave Since our last analyses the USD/CAD pair has been trading downwards, just like we expected, corrective wave A (coloured green) of the bigger wave (B) (coloured blue) has finished developing. Yesterday, during the Asian and European sessions we could observe descending movement from 1.0391 towards the 1.0323 level. Therefore, during the New York session this major currency has continued trading in a bearish mood and the price has reached a new daily low at 1.0284 level.We can consider this movement as the end of the sub-wave A (coloured green) of the wave (B) (coloured blue). At the moment the USD/CAD pair is trading around 1.0354 level and we are expecting to see price lower today when development of the wave C starts. In accordance with our wave rules and taking into account that wave B should retrace 50% of wave A, we can define the potential targets with measuring wave A with take profit at 1.0204 (50% of wave A). To reduce the risk, we can use invalidation point at 1.0390 level as stop loss. Support and Resistance (S3) 1.0151 (S2) 1.0218 (S1) 1.0258 (PP) 1.0325 (R1) 1.0365 (R2) 1.0432 (R3) 1.0472 Trading forecast Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why short positions at level 1.0320 with stop loss at 1.0390 and take profit at 1.0204 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, just like we expected, corrective wave A (coloured green) of the bigger wave (B) (coloured blue) has finished developing. Yesterday, during the Asian and European sessions we could observe descending movement from 1.0391 towards the 1.0323 level. Therefore, during the New York session this major currency has continued trading in a bearish mood and the price has reached a new daily low at 1.0284 level.We can consider this movement as the end of the sub-wave A (coloured green) of the wave (B) (coloured blue). At the moment the USD/CAD pair is trading around 1.0354 level and we are expecting to see price lower today when development of the wave C starts. In accordance with our wave rules and taking into account that wave B should retrace 50% of wave A, we can define the potential targets with measuring wave A with take profit at 1.0204 (50% of wave A). To reduce the risk, we can use invalidation point at 1.0390 level as stop loss.
Support and Resistance
(S3) 1.0151 (S2) 1.0218 (S1) 1.0258 (PP) 1.0325 (R1) 1.0365 (R2) 1.0432 (R3) 1.0472
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why short positions at level 1.0320 with stop loss at 1.0390 and take profit at 1.0204 are recommended.
The material has been provided by InstaForex Company – www.instaforex.com
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