12.02.201410:35 Forex Analysis & Reviews: Elliott Wave Analysis of USD/CAD for for February 12, 2014

USD/CAD Elliott Wave
The USD/CAD pair found resistance yesterday, and we see some downward movements in the b wave (coloured blue) of the bigger wave (a) (coloured red) that is currently developing. In the 1-hour chart, we can see that corrective wave b (coloured blue) has completed developing at 1.1091 and from there we are seeing a deep pullback inside the b wave that should end in the next few hours. While price stay above the previous low at 1.0965 we are going to wait for a break above 1.1020, that will trigger the fresh buying opportunity against our invalidation point. In accordance with our wave rules and taking into account that wave c should extend 100% of wave a, we can define the potential targets with measuring wave a with take profit at 1.1107 (100% of wave A).

Alternate count: Break below 1.0965 will tell us that we have just ended the (x) wave (coloured red) of the bigger wave [x] (coloured green) at the 1.1107 level, and that we have more downward movements toward 1.0830 to see before we look for another buying opportunity in this commodity pair.

Support and Resistance
(S3) 1.0889, (S2) 1.0946, (S1) 1.0976, (PP) 1.1033, (R1) 1.1063, (R2) 1.1120, (R3) 1.1150.

Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin upward movements. That is why long positions at the level of 1.1020 with stop loss at 1.0965 and take profit at 1.1107 are recommended.