USD/CAD Elliott Wave For the recent days, the USDCAD pair has been trading downwards, impulsive wave 5 (coloured green) of the bigger wave (i) (coloured blue) has been developing. During the Tuesdays Asian and European sessions we could observe descending movements from 1.0333 towards the 1.0300 level. Therefore, during the early New York session this commodity currency continued trading in the bearish mood and the price dropped to the 1.0237 level. At the moment, the USDCAD pair is trading around 1.0298 and we are expecting to see one more bullish movement today. In accordance with our wave rules and taking into account that wave 2 should retrace 50% of wave 1, we can define the potential targets with measuring wave 1 with take profit at 1.0410 (50% of wave 1). To reduce the risk, we can use invalidation point at the 1.0200 level as stop loss.
Alternation: Wave (ii) (coloured blue) is forming FLAT correction, we are currently in the wave C (coloured green) of (ii) and we are expecting to see push higher towards 1.0420 before the price collapse when (iii) wave starts.
Support and Resistance (S3) 1.0209 (S2) 1.0241 (S1) 1.0269 (PP) 1.0301 (R1) 1.0329 (R2) 1.0361 (R3) 1.0389
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 1.0265 with stop loss at 1.0200 and take profit at 1.0410 are recommended.
The material has been provided by InstaForex Company – www.instaforex.com
USD/CAD Elliott Wave
For the recent days, the USDCAD pair has been trading downwards, impulsive wave 5 (coloured green) of the bigger wave (i) (coloured blue) has been developing. During the Tuesdays Asian and European sessions we could observe descending movements from 1.0333 towards the 1.0300 level. Therefore, during the early New York session this commodity currency continued trading in the bearish mood and the price dropped to the 1.0237 level. At the moment, the USDCAD pair is trading around 1.0298 and we are expecting to see one more bullish movement today. In accordance with our wave rules and taking into account that wave 2 should retrace 50% of wave 1, we can define the potential targets with measuring wave 1 with take profit at 1.0410 (50% of wave 1). To reduce the risk, we can use invalidation point at the 1.0200 level as stop loss.
Alternation: Wave (ii) (coloured blue) is forming FLAT correction, we are currently in the wave C (coloured green) of (ii) and we are expecting to see push higher towards 1.0420 before the price collapse when (iii) wave starts.
Support and Resistance
(S3) 1.0209 (S2) 1.0241 (S1) 1.0269 (PP) 1.0301 (R1) 1.0329 (R2) 1.0361 (R3) 1.0389
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 1.0265 with stop loss at 1.0200 and take profit at 1.0410 are recommended.
The material has been provided by InstaForex Company – www.instaforex.com
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