USD/CAD Elliott Wave Since our last analyses the USDCAD pair has continued trading downwards, corrective wave .iv (coloured black) of the bigger wave c (coloured blue) has been developing. Yesterday, during the Asian and European sessions, we could observe descending movements from 1.0440 towards the 1.0414 level. Therefore, during the early New York session, this commodity pair did not manage to hold this levels and the price retraced back to the 1.0437 level. At the moment, the USDCAD pair is trading around 1.0423, and we are still looking for one more push higher before the price turn lower. In accordance with our wave rules and taking into account that wave C should retrace 100% of wave A, we can define the potential targets with measuring wave A with take profit at 1.0546 (100% of wave A). To reduce the risk, we can use invalidation point at the 1.0404 level as stop loss.
Alternate view: wave (y) is already over at 1.0525, and we see A-B-C pullback now, if this is a case, we should see bigger correction from the current levels towards the 1.0100 level, but this count will take a place only if the price manages to break below the 1.0404 level.
Support and Resistance (S3) 1.0386, (S2) 1.0400, (S1) 1.0414, (PP) 1.0428, (R1) 1.0442, (R2) 1.0456, (R3) 1.0470.
Trading forecast Proceeding from Elliott Wave rules today, the trend is expected to begin upward movements. That is why long positions at the level of 1.0450 with stop loss at 1.0404 and take profit at 1.0546 are recommended.
The material has been provided by InstaForex Company – www.instaforex.com
USD/CAD Elliott Wave
Since our last analyses the USDCAD pair has continued trading downwards, corrective wave .iv (coloured black) of the bigger wave c (coloured blue) has been developing. Yesterday, during the Asian and European sessions, we could observe descending movements from 1.0440 towards the 1.0414 level. Therefore, during the early New York session, this commodity pair did not manage to hold this levels and the price retraced back to the 1.0437 level. At the moment, the USDCAD pair is trading around 1.0423, and we are still looking for one more push higher before the price turn lower. In accordance with our wave rules and taking into account that wave C should retrace 100% of wave A, we can define the potential targets with measuring wave A with take profit at 1.0546 (100% of wave A). To reduce the risk, we can use invalidation point at the 1.0404 level as stop loss.
Alternate view: wave (y) is already over at 1.0525, and we see A-B-C pullback now, if this is a case, we should see bigger correction from the current levels towards the 1.0100 level, but this count will take a place only if the price manages to break below the 1.0404 level.
Support and Resistance
(S3) 1.0386, (S2) 1.0400, (S1) 1.0414, (PP) 1.0428, (R1) 1.0442, (R2) 1.0456, (R3) 1.0470.
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin upward movements. That is why long positions at the level of 1.0450 with stop loss at 1.0404 and take profit at 1.0546 are recommended.
The material has been provided by InstaForex Company – www.instaforex.com
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