USD/CAD Elliott Wave
Since our last analysis the USD/CAD pair was trading in a downward move like we expected, impulsive 3 wave (coloured blue) of the bigger (3) wave (coloured green) was developing. During the Asian and European sessions we could observe descending movement from 0.9967 towards 0.9927 level. Therefore, during the New York session this pair continued trading in a bearish mood and price reached a new low at 0.9910 level. At the moment the price is trading around 0.9890 and we are expecting to see bullish mood when development of the corrective 4 wave (coloured blue) starts. In accordance with our wave rules and taking into account that the wave 4 should retrace 38.2% of the wave 3, we can define the potential targets with measuring wave 3 with take profit at 0.9897(38.2% of wave 3). To reduce the risk, we can use support at 0.9800 level as stop loss.
Support and Resistance
(S3) 0.9877 (S2) 0.9898 (S1) 0.9911 (PP) 0.9933 (R1) 0.9954 (R2) 0.9967 (R3) 0.9989
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 0.9831 with stop loss 0.9800 and take profit at 0.9897 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 November 7, 2012 . Thanks for your support on USD/CAD Wave Analysis for November 7, 2012
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