USD/CAD Elliott Wave
Since our last analysis, the USD/CAD pair has continued trading in an uptrend, corrective wave (a) (coloured green) of the bigger wave [c] (coloured black) has been developing. In the 1-hour chart of the pair, we can see that the ascending move from the 1.1052 level has already showed us five waves, wave (a) should be over at the New York session high at the 1.1149 level. While price remain above the 1.1052 we are going to focus only on the buying opportunity that should come with a test of the 1.1100 level, 50% of the length of the wave (a). In accordance with our wave rules and taking into account that wave (c) should extend 100% of wave (a), we can define the potential targets with measuring wave (a) with take profit at 1.1195 (100% of wave (a)). The RSI indicator, on the 1-hour chart shows divergence that confirm impulsive wave idea inside the (a) wave, and we should see another divergence when we see the end of the (c) wave.
Support and Resistance
(S3) 1.1016, (S2) 1.1044, (S1) 1.1087, (PP) 1.1115, (R1) 1.1158, (R2) 1.1186, (R3) 1.1229.
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin upward movements. That is why short positions at the level of 1.1100 with stop loss at 1.1052 and take profit at 1.1195 are recommended.
The material has been provided by InstaForex Company - www.instaforex.com
For detail explanation and best discovery on market trends you may visit via Elliott Wave Analysis of USD/CAD for February 27, 2014 . Thanks for your support on Elliott Wave Analysis of USD/CAD for February 27, 2014
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