USD/CAD Elliott Wave
From the early start of this week, the USD/CAD pair has been trading downwards, impulsive wave [i] (coloured green) of the bigger wave C (coloured red) has been developing. In the 90-minutes chart of the pair above, we can see that the price has retraced towards the 50% of the previous upwards cycle from the 1.0853 level, just like we expected, but since the move looks impulsive, we are going to change and focus on the selling opportunities in the pair right now. While the price remains below 1.1053, we are going to watch for the pullback in the wave [ii] to enter a short position. In accordance with our wave rules and taking into account that wave [iii] should extend 161.8% of wave [i], we can define the potential targets with measuring wave [i] with take profit at 1.0788 (161.8% of wave [i]).
Support and Resistance
(S3) 1.0828, (S2) 1.0885, (S1) 1.0915, (PP) 1.0972, (R1) 1.1002, (R2) 1.1059, (R3) 1.1089.
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 1.1010 with stop loss at 1.1050 and take profit at 1.0788 are recommended.
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Performed by Nicola Delic, Analytical expert InstaForex Group © 2007-2014 |
Elliott Wave Analysis of USD/CAD for for April 30, 2014
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