USD/CAD Elliott Wave
Last week, the USD/CAD pair has been trading upwards, impulsive wave iii (coloured blue) of the biggerwave (c) (coloured red) has been developing. During the Friday’s sessions, we could observe strongascending movements from 1.0618 towards 1.0717 level and in the chart above you can see that we arelabelingthis strong move as extended wave iii (coloured blue). Today this commodity pair did not manageto hold the highs and the price is trading currently around 1.0708 level, we are expecting to see one morepush higher from 1.0685 (38.2% of iv vs iii). In accordance with our wave rules and taking into accountthat wave 5 should retrace 161.8% of wave 4, we can define the potential targets with measuring wave 4with take profit at 1.0750 (161.8% of wave 4).To protect long positions we can use invalidation level atthe 1.0670 level.
Support and Resistance
(S3) 1.0543 (S2) 1.0580 (S1) 1.0643 (PP) 1.0680 (R1) 1.0743 (R2) 1.0780 (R3) 1.0843
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin upward movements. That is whylong positions at the level of 1.0685 with stop loss at 1.0670 and take profit at 1.0750 are recommended.
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Performed by , Analytical expert InstaForex Group © 2007-2013 |
Elliott wave analysis of USD/CAD for December 30, 2013
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