USD/CAD Elliott Wave
For the last few week the USD/CAD pair was trading in an upward move, corrective wave (c) (coloured orange) of the bigger 4 wave (coloured purple) was developing. Yesterday during the Asian session we could observe ascending movement towards the 1.0018 level and we can consider this move as the end of the impulsive (5) wave (coloured green) of the bigger wave (c) (coloured orange). Therefore, during the European and New York sessions this major pair started pushing lower when development of the final impulsive 5 wave (coloured purple) starts. At the moment the USD/CAD pair is trading around 0.9990 level and we are expecting to see price around 0.9560 level in the next few weeks. In accordance with our wave rules and taking into account that the wave 5 should retrace 161.8% of the wave 1, we can define the potential targets with measuring wave 1 with take profit 1 at 0.9736 (100% of wave 1) and take profit 2 at 0.9560 (161.8% of wave 1). To reduce the risk, we can use invalidation at 1.0019 level as stop loss.
Support and Resistance
(S3) 0.9963 (S2) 0.9976 (S1) 0.9985 (PP) 0.9999 (R1) 1.0012 (R2) 1.0021 (R3) 1.0035
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 0.9880 with stop loss 1.0019, take profit 1 at 0.9736, and take profit 2 at 0.9560 are recommended.
The material has been provided by Instaforex Company - instaforex.com
For detail explanation and best discovery on market trends you may visit via USD/CAD Wave Analysis for October 31, 2012 . Thanks for your support on USD/CAD Wave Analysis for October 31, 2012
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