USD/CAD Elliott Wave
Since our last analyses the USD/CAD pair has continued trading in a bearish mood and price has reached our target for the impulsive wave 5 (coloured blue) of the bigger wave (A) (coloured green). Yesterday, during the Asian and European sessions we could observe strong descending movement from 1.0348 towards the 1.0297 level. Therefore, during the New York session this downwards move has continued and this commodity currency has reached a new low at 1.0276 level (end of the 5 wave). At the moment the USD/CAD pair is trading at 1.0300 area and we expect to see the price higher for the next few sessions. In accordance with our wave rules and taking into account that wave B should retrace 61.8% of wave A, so we can define the potential targets with measuring wave A with take profit at 1.0481 (61.8% of wave A). To reduce the risk, we can use invalidation point at 1.0275 level as stop loss.
Support and Resistance
(S3) 1.0188 (S2) 1.0232 (S1) 1.0259 (PP) 1.0303 (R1) 1.0330 (R2) 1.0374 (R3) 1.0401
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0340 with stop loss at 1.0275 and take profit at 1.0481 are recommended.
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Performed by Nicola Delic, Analytical expert InstaForex Group © 2007-2013 |
USD/CAD analysis for July 24, 2013
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