USD/CAD Elliott Wave Since our last analyses the USDCAD pair has been trading sideways, corrective wave .iv (coloured black) of the bigger wave A (coloured blue) has been developing.Yesterday, during the Asian session, we could observe descending movements from 1.0450 towards the 1.0427 level and with that move we ended the first leg of the wave .iv (coloured black). Therefore, during the European and New York sessions this commodity currency did not manage to go lower and the price has retraced back to the 1.0449 level. At the moment, the USDCAD pair is trading around 1.0437, and we are expecting to see the price moving higher from 23.6-38.2% of the .iii wave. In accordance with our wave rules and taking into account that wave 5 should retrace 161.8% of wave 4, we can define the potential targets with measuring wave 4 with take profit at 1.0484 (161.8% of wave 4). To reduce the risk, we can use invalidation point at the 1.0370 level as stop loss.
Support and Resistance (S3) 1.0407, (S2) 1.0418, (S1) 1.0430, (PP) 1.0441, (R1) 1.0453, (R2) 1.0464, (R3) 1.0476.
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 1.0427 with stop loss at 1.0370 and take profit at 1.0484 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 sideways, corrective wave .iv (coloured black) of the bigger wave A (coloured blue) has been developing.Yesterday, during the Asian session, we could observe descending movements from 1.0450 towards the 1.0427 level and with that move we ended the first leg of the wave .iv (coloured black). Therefore, during the European and New York sessions this commodity currency did not manage to go lower and the price has retraced back to the 1.0449 level. At the moment, the USDCAD pair is trading around 1.0437, and we are expecting to see the price moving higher from 23.6-38.2% of the .iii wave. In accordance with our wave rules and taking into account that wave 5 should retrace 161.8% of wave 4, we can define the potential targets with measuring wave 4 with take profit at 1.0484 (161.8% of wave 4). To reduce the risk, we can use invalidation point at the 1.0370 level as stop loss.
Support and Resistance
(S3) 1.0407, (S2) 1.0418, (S1) 1.0430, (PP) 1.0441, (R1) 1.0453, (R2) 1.0464, (R3) 1.0476.
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 1.0427 with stop loss at 1.0370 and take profit at 1.0484 are recommended.
The material has been provided by InstaForex Company – www.instaforex.com
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