04.03.201411:00 Forex Analysis & Reviews: Elliott Wave Analysis of USD/CAD for March 04, 2014

Long-term review

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USD/CAD Elliott Wave
For the last few weeks, the USD/CAD pair was trading downwards, corrective wave [b] (coloured black) of the bigger wave A (coloured blue) was developing. In the 1-hour chart of the USD/CAD pair, we can see that the price broke to the new lows in the early Friday's session, this move makes us look at the [b] wave as the Zig-Zag pattern. The final (c) wave of the bigger wave [b] wave tested the 100% extension of the wave (a), so techincily speaking wave [b] should be over with a test of the 1.1008 level. All the way the price remains above the 1.09300 level (short-term invalidation), we are going to look only for a buying opportunity in the [c] of A wave. 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 1.1288 (100% of wave [a]).

Support and Resistance
(S3) 1.1066, (S2) 1.1091, (S1) 1.1108, (PP) 1.1133, (R1) 1.1150, (R2) 1.1175, (R3) 1.1192.

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 1.1090 with stop loss at 1.0930 and take profit at 1.1288 are recommended.

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