USD/CAD Elliott Wave
Since our last analysis, the USD/CAD pair has been trading sideways, corrective wave [iv] (coloured black) of the bigger wave C (coloured blue) has been developing. In the 1-hour chart of the pair above, we can see that the price is trading in the range 1.1077 - 1.1000 for the last couple of sessions, pattern that we are seeing on the chart starts to look as the Triangle, and if we are correct we should have one more push higher before the price turn lower in the [v] wave. Our strategy will stay unchanged, we are going to look to establish a selling position at the break below the lower trend line. In accordance with our wave rules and taking into account that wave [v] should extend 123.6% of wave [iv], we can define the potential targets with measuring wave [iv] with take profit at 1.0982 (123.6% of wave [iv]). Swing traders need to wait a new low to get reached before we try another long opportunity.
Support and Resistance
(S3) 1.0967, (S2) 1.0985, (S1) 1.1009, (PP) 1.1027, (R1) 1.1051, (R2) 1.1069, (R3) 1.1093.
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 1.1010 with stop loss at 1.1050 and take profit at 1.0982 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 April 03, 2014 . Thanks for your support on Elliott Wave Analysis of USD/CAD for April 03, 2014
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