USD/CAD Elliott Wave Since our last analyses, the USDCAD pair has been trading upwards, just like we expected, impulsive wave .v (coloured black) of the bigger wave a (coloured blue) has been developing. Yesterday, during the Asian session, we could observe a descending movement from 1.0454 towards the 1.0426 level, and we can consider this move as the end of the .iv wave (coloured black). Therefore, during the European and New York sessions, this major pair did not manage to hold this levels and the price reached a new high at the 1.0473 level. We can consider this move a potential end of the a wave (coloured blue). At the moment, the USDCAD pair is trading around 1.0460, and we are expecting to see more bearish movements for the next few days. 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 1.0371 (50% of wave A). To reduce the risk, we can use invalidation point at the 1.0473 level as stop loss.
Support and Resistance (S3) 1.0396, (S2) 1.0412, (S1) 1.0439, (PP) 1.0455, (R1) 1.0482, (R2) 1.0498, (R3) 1.0525.
Trading forecast Proceeding from Elliott Wave rules today, the trend is expected to begin downward movements. That is why short positions at the level of 1.0430 with stop loss at 1.0473 and take profit at 1.0371 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, impulsive wave .v (coloured black) of the bigger wave a (coloured blue) has been developing. Yesterday, during the Asian session, we could observe a descending movement from 1.0454 towards the 1.0426 level, and we can consider this move as the end of the .iv wave (coloured black). Therefore, during the European and New York sessions, this major pair did not manage to hold this levels and the price reached a new high at the 1.0473 level. We can consider this move a potential end of the a wave (coloured blue). At the moment, the USDCAD pair is trading around 1.0460, and we are expecting to see more bearish movements for the next few days. 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 1.0371 (50% of wave A). To reduce the risk, we can use invalidation point at the 1.0473 level as stop loss.
Support and Resistance
(S3) 1.0396, (S2) 1.0412, (S1) 1.0439, (PP) 1.0455, (R1) 1.0482, (R2) 1.0498, (R3) 1.0525.
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin downward movements. That is why short positions at the level of 1.0430 with stop loss at 1.0473 and take profit at 1.0371 are recommended.
The material has been provided by InstaForex Company – www.instaforex.com
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