USD/CAD Elliott Wave Since our last analyses, the USDCAD pair has been trading upwards, just like we expected, corrective wave C (coloured blue) of the bigger wave (y) (coloured green) has been developing. Yesterday, during the Asian and half of the European session we could observe a descending movement from 1.0333 towards the 1.0306 level, and we can consider this move as the end of the second leg of the C wave (coloured blue). Therefore, during the early New York session, this commodity pair pushed aggressively higher to the 1.0372 level. At the moment, the USDCAD pair is trading around 1.0374, and we are expecting to see more downward movements in the next few sessions. 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 1.0000 (100% of wave A). To reduce the risk, we can use invalidation point at the 1.0473 level as stop loss.
Support and Resistance (S3) 1.0259 (S2) 1.0282 (S1) 1.0326 (PP) 1.0349 (R1) 1.0393 (R2) 1.0416 (R3) 1.0460
Trading forecast Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movements. That is why short positions at the level of 1.0335 with stop loss at 1.0473 and take profit at 1.0000 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 been trading upwards, just like we expected, corrective wave C (coloured blue) of the bigger wave (y) (coloured green) has been developing. Yesterday, during the Asian and half of the European session we could observe a descending movement from 1.0333 towards the 1.0306 level, and we can consider this move as the end of the second leg of the C wave (coloured blue). Therefore, during the early New York session, this commodity pair pushed aggressively higher to the 1.0372 level. At the moment, the USDCAD pair is trading around 1.0374, and we are expecting to see more downward movements in the next few sessions. 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 1.0000 (100% of wave A). To reduce the risk, we can use invalidation point at the 1.0473 level as stop loss.
Support and Resistance
(S3) 1.0259 (S2) 1.0282 (S1) 1.0326 (PP) 1.0349 (R1) 1.0393 (R2) 1.0416 (R3) 1.0460
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movements. That is why short positions at the level of 1.0335 with stop loss at 1.0473 and take profit at 1.0000 are recommended.
The material has been provided by InstaForex Company – www.instaforex.com
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