USD/CAD Elliott Wave
For the last few days, the USD/CAD pair has been trading sideways, corrective wave (ii) (coloured green) of the bigger [c] wave (coloured black) has been developing. In the chart of the USD/CAD pair above, we can see that we have already had a corrective pullback from the 1.1131 level, now since wave (ii) did not reach our expected 1.1040 level, we must have a two scenarios in the next few sessions. Our strategy will stay, buying the USD/CAD pair with a test of 1.1130 or 1.1040 level, but remember that price need to remain above the 1.1000 area all the way wave (iii) is developing.In accordance with our wave rules and taking into account that wave (iii) should extend 161.8% of wave (i), we can define the potential targets with measuring wave (i) with take profit at 1.1333 (161.8% of wave (i)).Swing traders can also try same position, or if you want to play safe, wait for the (Z) wave (coloured red) to finish the cycle and we can look for a selling opportunities from there.
Support and Resistance
(S3) 1.1014, (S2) 1.1043, (S1) 1.1073, (PP) 1.1102, (R1) 1.1132, (R2) 1.1161, (R3) 1.1191.
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 1.1130 with stop loss at 1.1000 and take profit at 1.1333 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 March 12, 2014 . Thanks for your support on Elliott Wave Analysis of USD/CAD for March 12, 2014
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