USD/CAD Elliott Wave
Last week, the USD/CAD pair was trading upwards, impulsive wave [i] (coloured green) of the bigger wave A (coloured red) was developing. In the 1-hour chart above, we can observe impulsive movement from the 1.0853 level, at the moment we have only sub-wave (i) and (ii) (coloured blue) completed, so more upside movement is to go. While price remains above the 1.0938 level, we are going to focus on the buying opportunity in the (iii) wave. 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 1.1167 (161.8% of wave (i)).
Alternate count: we must have the backup plan, and instead of looking for five waves, we are just going to look for one more push higher towards 1.01065 as next potential resistance, this is the 50% of the previous cycle from the 1.1278 level.
Support and Resistance
(S3) 1.0886, (S2) 1.0914, (S1) 1.0937, (PP) 1.0965, (R1) 1.0988, (R2) 1.1016, (R3) 1.1039.
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 1.0990 with stop loss at 1.0938 and take profit at 1.1167 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 15, 2014 . Thanks for your support on Elliott Wave Analysis of USD/CAD for April 15, 2014
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