USD/CAD Elliott Wave
Since our last analyses the USD/CAD pair has been trading downwards, just like we expected, corrective wave (y) (coloured green) of the bigger wave [b] (coloured black) has finished developing. During Monday’s Asian and European sessions, we could observe ascending movements from 1.0509 towards the 1.0581 level, and we can consider this move as the end of the [b] wave (coloured black). Therefore, during the New York session this commodity currency did not manage to hold this levels and the price retraced back to 1.0520. At the moment, the USDCAD pair is trading around 1.0534 and we are expecting to see more bearish movements in the next few days. In accordance with our wave rules and taking into account that wave 3 should retrace 161.8% of wave 1, we can define the potential targets with measuring wave 3 with take profit at 1.0462 (161.8% of wave 1). To reduce the risk, we can use invalidation point at the 1.0580 level as stop loss.
Support and Resistance
(S3) 1.0455, (S2) 1.0489, (S1) 1.0515, (PP) 1.0549, (R1) 1.0575, (R2) 1.0609, (R3) 1.0635.
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 1.0550 with stop loss at 1.0580 and take profit at 1.0462 are recommended.
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Performed by Nicola Delic, Analytical expert InstaForex Group © 2007-2013 |
USD/CAD analysis for November 26, 2013
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